A $10,500 investment has a 15% loss each year. How do you determine the value of the investment after each of the following years: 1,2,4, and 10?

1 Answer
Kushagra
Jan 31, 2018

This one is in depreciation.. and leaving the one year one....... all need annually one..... the depreciation annually formula is
p[1-r/100]^t
where p is principal
r is rate
t is time
One year one
10,500[1-15/100]^1
Remember it is not necessary to use this formula.... as it's one year
10,5cancel00xx85/(1cancel00)
105xx85
8925 is the value after one year
Two year one
10,500[1-15/100]^2
Notice not much has changed
10,5cancel00xx(cancel85^17xx85)/(cancel100^20xx1cancel00)
105xx17xxcancel85^17/cancel20^4
That gives us
7586.25 is the value after two years depreciation
Now you get the drill..... Try to do it yourself

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