Question

Gautam purchased a new computer for 17,500. Its value depreciates at the rate of 8%. What will be its
value three years hence?
​

Answer 1

Answer:

13627.04 if we find it out by compound

interest's formula.

13300 ,if we use simple interest's formula.

Explanation:

Using Compound Interest

P=17,500

R= -8

T= 3

A = 17500(92/100)^3

= 17500×23/25×23/25×23/25

= 28×12167/25

= 13627.04

OR

Simple Interest

(p×r×t)/100

= (17,500×-8×3)/100

= −4200

So A= 17,500−4200=13300