Question

Elena bought a video camera for $1350. What would be the value of the video camera after 3 years if it depreciated at a rate of 16% pa?

Answer 1

$\underline \bold{Solution:-}$

Cost of camera (P) = $1350

Time = 3 years

Rate of depreciation = 16%

Amount
$= p {(1 - \frac{rate}{100}) }^{time} \\ \\ = 1350 {( \frac{100 - 16}{100}) }^{3} \\ \\ = 1350 \times {0.84}^{3} \\ \\ = 800.15$

After 3 years it's cost will be $ 800.15.