A tool and die company buys a machine for $175,000 and it depreciates at a rate of 50% per year.(In other words,at the end of each year the depreciated value is 50% of what it was at the beginning of the year. )Find the depreciated value of the machine after 5 full years.
A)$5470.75
B)$5467.75
C)$5468.75
D)$5471.75
E)$5469.75

Question

A tool and die company buys a machine for $175,000 and it depreciates at a rate of 50% per year.(In other words,at the end of each year the depreciated value is 50% of what it was at the beginning of the year. )Find the depreciated value of the machine after 5 full years. ​
A)$5470.75
B)$5467.75
C)$5468.75
D)$5471.75
E)$5469.75

Quizplus · Accepted Answer

After 1 year, the depreciated value of the machine will be 50% of $175,000, which is $87,500.
After 2 years, the depreciated value will be 50% of $87,500, which is $43,750.
After 3 years, the depreciated value will be 50% of $43,750, which is $21,875.
After 4 years, the depreciated value will be 50% of $21,875, which is $10,937.50.
After 5 years, the depreciated value will be 50% of $10,937.50, which is $5,468.75.

Therefore, the answer is C, $5,468.75.

A Tool and Die Company Buys a Machine for $175,000