An article valued at 12;000 depreciates 5% annually. What is its value after 4 years?
An article valued at 12;000 depreciates 5% annually. What is its value after 4 years?
A: 10870
B: 10970
C: 10770
D: 9774
With 5% annual depreciation; the article’s value after 4 years is 12;000 × (0.95)^4 ≈ 9774. Other values are incorrect. This compound depreciation formula is crucial for financial planning; significant for studying asset valuation and economic analysis.