Answer
Explanation
This type of depreciation follows compound interest and the value of the item after a period of time, t, is given as
A = P (1 - r)ᵗ
where
A = Amount or Value after a period of time = ?
P = Initial value of the item = $16,600
r = Rate of decrease = 14% = 0.14
t = time taken = 11
A = P (1 - r)ᵗ
A = 16,600 (1 - 0.14)¹¹
A = 16,600 (0.86)¹¹
A = 16,600 (
