Question

The price of mobile phone depreciate at rate of 6 percent every year if its current cost 20000 what will be the price after 4?

Answer 1

the rate of depreciation= i = 6%

no.of years for which the mobile will be put to use =n= 4

value at the end of 4 years = A

P = value at the beginning = 20000

P(1-i)^n = A

20000(1-6/100)^4 = A

20000(1- 0.06)^4 = A

20000(0.84)^2 = A

20000(0.7056) = A

A = 9957.42

A= 9957.42= cost of the phone after 4 years