Nickii Fay
May 27
A 15-seater bus bought for K89 000 depreciate by 10% p.a. If it is to be resold after 4 years use, what will be the price of the 15-seater bus?
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ChatGPT
May 27
To calculate the depreciation of the bus after 4 years, we can use the formula:
Depreciated value = Initial value * (1 - depreciation rate)^number of years
Depreciated value = K89,000 * (1 - 0.10)^4
Depreciated value = K89,000 * (0.9)^4
Depreciated value = K89,000 * 0.6561
Depreciated value = K58,029.90
Therefore, the price of the 15-seater bus after 4 years of use will be K58,029.90.
Depreciated value = Initial value * (1 - depreciation rate)^number of years
Depreciated value = K89,000 * (1 - 0.10)^4
Depreciated value = K89,000 * (0.9)^4
Depreciated value = K89,000 * 0.6561
Depreciated value = K58,029.90
Therefore, the price of the 15-seater bus after 4 years of use will be K58,029.90.
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Google Gemini AI
May 27
Step 1: Calculate depreciation per year
Depreciation rate = 10%
Depreciation per year = 10% of K89,000
= 0.10 x K89,000
= K8,900
Step 2: Calculate total depreciation after 4 years
Total depreciation = Depreciation per year x Number of years
= K8,900 x 4
= K35,600
Step 3: Calculate the resale price
Resale price = Original cost - Total depreciation
= K89,000 - K35,600
= K53,400
Therefore, the resale price of the 15-seater bus after 4 years of use will be K53,400.
Depreciation rate = 10%
Depreciation per year = 10% of K89,000
= 0.10 x K89,000
= K8,900
Step 2: Calculate total depreciation after 4 years
Total depreciation = Depreciation per year x Number of years
= K8,900 x 4
= K35,600
Step 3: Calculate the resale price
Resale price = Original cost - Total depreciation
= K89,000 - K35,600
= K53,400
Therefore, the resale price of the 15-seater bus after 4 years of use will be K53,400.
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