A Company Buys a Machine for $400,000

Multiple Choice

A company buys a machine for $400,000. During the next 8 years, the machine depreciates at the rate of 25% per year. That is, at the end of each year, the depreciated value is 75% of what it was at the beginning of the year. Find the depreciated value of the machine at the end of the 8 full years. Round answer to the nearest cent.

A) 24.41
B) 30,033.87
C) 6.10
D) 53,393.55
E) 40,045.17