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Financial Maths, SMB-018

Marnus bought a cricket bowling machine two years ago that cost $3400. Its value has depreciated by 10% each year, based on the declining-balance method.

What is the salvage value today, to the nearest dollar?  (2 marks)

Show Answers Only

`$2754`

Show Worked Solution
`S` `= V_0 (1-r)^n`
  `= 3400 (1-0.10)^2`
  `= 3400 (0.90)^2`
  `= $2754`

Filed Under: Depreciation Tagged With: num-title-ct-coreb, smc-4335-10-Find S

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