Depreciation help

• November 11th 2012, 01:24 PM
DonGorgon
Depreciation help
I just can't seem to get the answer right here, really infuriating!

'A machine depreciates by 7% p.a. Its price when new is £8000. Calculate its depreciated value after 5 years, depreciated monthly.'

Please can someone help in terms of the appropriate method to use?
• November 11th 2012, 01:36 PM
skeeter
Re: Depreciation help
depreciation rate per month ... $\frac{.07}{12}$

$V(t) = 8000 \left(1 - \frac{.07}{12}\right)^{60}$