Answer:
Book value= $62.83
Step-by-step explanation:
Giving the following information:
A motorcycle bought for $10,000 depreciates continuously at 9% per annum.
First, we need to calculate the depreciation of seven years:
FV= PV*{[1+(-i/100)]^n}
FV= 10,000*{[1+(-0.09/100)]^7}
FV= $9937.17
Book value= 10,000 - 9,937.17
Book value= $62.83
