Answer to Question #154431 in Financial Math for kris

Question

Find the book value at the end of four years for a machine which costs RM60,000. Use the declining balance method with an annual rate of 18%.

Answer 1

The book value at the end of four years for a machine which costs RM60,000 is: $BV = 60,000×(1 - 0.18)^4 = RM27,127.31.$