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Construct and use reducing-balance depreciation models

Question 1 of 8

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A buyer pays $49,561.60 for a caravan. Reducing-balance depreciation at 25% per year gives the value \(V_n\), in dollars, after \(n\) years as the relation below

\[V_0 = \$49{,}561.60, \quad V_{n+1} = R \times V_n, \quad R = 0.75\]

Use the ideal model at full precision: do not round the value after each yearly update. Round a requested reported amount only once, to the nearest cent where needed

3 marks

Find the caravan value at the end of each of the first 3 years. Every value comes out exact: give each answer in dollars and cents