8. The Government of Belize bought a new Isuzu D-Max Pickup from Bravo Motors for $80,000. The pickup depreciates at a rate of 7.5% per annum. What will be the value of the pickup after five years?
To calculate the value of the pickup after five years, we need to calculate the depreciation for each year.
Year 1: 80,000 * 7.5% = $6,000
After the first year, the value of the pickup will be: 80,000 - 6,000 = $74,000
Year 2: 74,000 * 7.5% = $5,550
After the second year, the value of the pickup will be: 74,000 - 5,550 = $68,450
Year 3: 68,450 * 7.5% = $5,123.75
After the third year, the value of the pickup will be: 68,450 - 5,123.75 = $63,326.25
Year 4: 63,326.25 * 7.5% = $4,749.46
After the fourth year, the value of the pickup will be: 63,326.25 - 4,749.46 = $58,576.79
Year 5: 58,576.79 * 7.5% = $4,393.26
After the fifth year, the value of the pickup will be: 58,576.79 - 4,393.26 = $54,183.53
Therefore, the value of the pickup after five years will be $54,183.53.
To calculate the value of the pickup after five years, we need to find the depreciation amount for each year and subtract it from the initial price.
Step 1: Calculate the depreciation amount for each year.
Depreciation rate: 7.5%
Depreciation amount for one year = 7.5% of $80,000
Depreciation amount for one year = 0.075 * $80,000 = $6,000
Step 2: Calculate the value of the pickup after five years.
Value after five years = Initial price - (Depreciation amount for one year * Number of years)
Value after five years = $80,000 - ($6,000 * 5)
Value after five years = $80,000 - $30,000
Value after five years = $50,000
Therefore, the value of the pickup after five years will be $50,000.