The scrap value formula is given by:

$S(n) = C(1 - r)^n$

Where:

• $C$ is the original cost,
• $r$ is the annual percentage of value lost (in decimal form),
• $n$ is the useful life of the machine in years.

Let's plug in the values:

• $C = 66,000$,
• $r = 15\% = 0.15$,
• $n = 9$ years.

Now calculate:

$S(9) = 66,000 \times (1 - 0.15)^9$

Let's compute this.The scrap value of the machine after 9 years is approximately $15,286.72.

Do you want more details or have any questions?

Here are 5 related questions:

1. How does the scrap value change if the annual depreciation rate increases?
2. What would the scrap value be after 5 years instead of 9?
3. How does the formula behave if there is no annual depreciation (i.e., $r = 0$)?
4. Can you calculate the original cost if you know the scrap value and useful life?
5. How does compound depreciation differ from linear depreciation?

Tip: Always express the rate of depreciation as a decimal when using formulas (e.g., 15% as 0.15).