If a machine costs 8000 and depreciates 10% per year, what is its value after 1 year?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the Officer Training School (OTS) Talon Test. Study with detailed questions and explanations. Boost your confidence and ace your exam!

Multiple Choice

If a machine costs 8000 and depreciates 10% per year, what is its value after 1 year?

Explanation:
Depreciation reduces value by a percentage of the current value. For a machine costing 8000 with a 10% annual depreciation, the amount lost in value after one year is 0.10 × 8000 = 800. Subtracting that from the original cost gives 8000 − 800 = 7200. So the value after one year is 7200. The other numbers come from not applying the depreciation or misplacing the decimal: 8000 means no depreciation; 720 is not the 10% decrease of 8000 (that would be 800); 72000 is an incorrect value far above the original cost.

Depreciation reduces value by a percentage of the current value. For a machine costing 8000 with a 10% annual depreciation, the amount lost in value after one year is 0.10 × 8000 = 800. Subtracting that from the original cost gives 8000 − 800 = 7200. So the value after one year is 7200. The other numbers come from not applying the depreciation or misplacing the decimal: 8000 means no depreciation; 720 is not the 10% decrease of 8000 (that would be 800); 72000 is an incorrect value far above the original cost.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy