A motorcycle purchased for 12,500 today will be valued 7% less each year. How much could you expect to receive for the motorcycle at the end of 4 years of you wanted to sell it?
Year 1 $12500 x .07 = $875 12500-875=11625 Year 2 11625 x .07 = $813.75 11625-813.75=10811 Year 3 10811 x .07 = $756.79 10811-756.79= 10054.21 Year 4 10054.21 x .07= 703.79 10054.21-703.79= 9350.42 So after 4 years expect to get $9350.42
