A company bought a van that had a value of £12000. Each year the value of the van depreciates by 25%%. Work out the value of the van at the end of three years.
1 - 25% =75%
PV = 12,000 x .75^3
PV = 12,000 x 0.421875
PV=5,062.50 pounds - the value of the van after 3 years.
