Answer:
Number of year = 9.5 year
Step-by-step explanation:
Given:
Initial value[Cost price] = $5,000,000
Depreciation rate[r] = 7% = 0.07
Final value[After depreciation cost] = 5,000,000 / 2 = $2,500,000
Find:
Number of year[After half value]
Computation:
A = p[1-R]ⁿ
Final value = Initial value[1-r]ⁿ
2,500,000 = 5,000,000[1-0.07]ⁿ
0.5 = [0.93]ⁿ
Number of year = 9.5 year
