Emma pays $2,600 for a washer/dryer combo. Each year, the appliance loses 15% of its resale value. How much will it be worth in 4 years?
Question
Emma pays $2,600 for a washer/dryer combo. Each year, the appliance loses 15% of its resale value. How much will it be worth in 4 years?
Solution
To calculate the value of the washer/dryer combo after 4 years, we need to apply the annual depreciation rate of 15% to the initial value of $2,600 for each of the 4 years.
Here are the steps:
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Calculate the annual depreciation amount: 15/100 * 390. This is how much value the washer/dryer combo loses each year.
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Subtract the annual depreciation from the initial value for each year:
- After 1 year: 390 = $2,210
- After 2 years: 390 = $1,820
- After 3 years: 390 = $1,430
- After 4 years: 390 = $1,040
So, the washer/dryer combo will be worth $1,040 after 4 years.
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