Find the value of a Truck after 2 years if it costs $18500 new and depreciates at 10% p.a.

To find the value of the truck after 2 years, we can use the formula for depreciation:

\[
V = P \times (1 - r)^t
\]

where:
- $ V $ is the value of the truck after $ t $ years,
- $ P $ is the original price of the truck,
- $ r $ is the annual depreciation rate, and
- $ t $ is the number of years.

Given:
- $ P = 18500 $ dollars,
- $ r = 10\% = 0.10 $,
- $ t = 2 $ years.

Plugging in the values:

\[
V = 18500 \times (1 - 0.10)^2
\]
\[
V = 18500 \times (0.90)^2
\]
\[
V = 18500 \times 0.81
\]
\[
V = 14985 \text{ dollars}
\]

So, the value of the truck after 2 years is **$14,985**.

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Here are 5 related questions:
1. How does increasing the depreciation rate affect the value of the truck after 2 years?
2. What would be the truck's value after 5 years?
3.

Discover how to calculate the value of a truck after 2 years of depreciation at a rate of 10% per annum. Use the depreciation formula V = P * (1 - r)^t with P = $18,500, r = 10%, and t = 2 years. Learn the step-by-step solution and explore related questions.

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