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?

Question

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

Impact of this question

2823 views around the world

You can reuse this answer
Creative Commons License

Answer 1 · 2018-01-31T17:15:00

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

Science

Math

Humanities

... and beyond

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

Related questions

Impact of this question