Answer :
Sure, let's walk through the solution step-by-step to determine the number of years it will take for the lathe to be sold due to depreciation.
1. Initial Information:
- The original value of the lathe is E3000.
- The lathe depreciates at a rate of 15% per year.
- The lathe will be sold when its value drops below E550.
2. Understanding Depreciation:
- Depreciation means that each year, the lathe loses 15% of its value. Therefore, it retains 85% (100% - 15%) of its value each year.
3. Calculation Process:
- Year 0: The starting value is E3000.
- Year 1: The value is reduced to 85% of E3000.
- Year 2: The value is reduced to 85% of the Year 1 value.
- Continue this process year by year until the lathe's value is less than E550.
4. Result:
- After 11 years, the lathe's value falls below the threshold of E550.
- Specifically, in the 11th year, the value is around E502.03.
Thus, the lathe is sold after 11 years when its value falls below E550.
1. Initial Information:
- The original value of the lathe is E3000.
- The lathe depreciates at a rate of 15% per year.
- The lathe will be sold when its value drops below E550.
2. Understanding Depreciation:
- Depreciation means that each year, the lathe loses 15% of its value. Therefore, it retains 85% (100% - 15%) of its value each year.
3. Calculation Process:
- Year 0: The starting value is E3000.
- Year 1: The value is reduced to 85% of E3000.
- Year 2: The value is reduced to 85% of the Year 1 value.
- Continue this process year by year until the lathe's value is less than E550.
4. Result:
- After 11 years, the lathe's value falls below the threshold of E550.
- Specifically, in the 11th year, the value is around E502.03.
Thus, the lathe is sold after 11 years when its value falls below E550.
