Given:
Cost = 12,050
depreciation rate = 12%
year beginning value dep.rate depreciation ending value
1
12,050.00 12%
1,446.00
10,604.00
2
10,604.00 12%
1,272.48
9,331.52
3
9,331.52 12%
1,119.78
8,211.74
4
8,211.74 12%
985.41
7,226.33
5
7,226.33 12%
867.16
6,359.17
6
6,359.17 12%
763.10
5,596.07
7
5,596.07 12%
671.53
4,924.54
8
4,924.54 12%
590.94
4,333.60
9
4,333.60 12%
520.03
3,813.56
The boat will be worth $3,813.56 after 9 years.
Depreciation = beginning cost x depreciation rate
Ending cost = beginning cost - depreciation
Depreciation is the wear and tear of an object that decreases its value.
