Question

Colin buys a tv for £780.

It depreciates at a rate of 5% per year.
How much will it be worth in 6 years?
Give your answer to the nearest penny where appropriate.

Answer 1

573.37

Explanation:

Answer 2

£573.40

Explanation:

Amount = cost price - total depreciation

depreciation (1st year ) = 5% of £780

=
`(5)/(100)` x 780

= 0.05 x 780

= £39.00

depreciation (2nd year) = 5% of £741

= £37.05

depreciation (3rd year) = 5% of 703.95

= £35.1975

depreciation (4th year) = 5% of 668.7525

= £33.437625

depreciation (5th year) = 5% of 635.314875

= £31.76574375

depreciation (6th year) = 5% of 603.5491313

= £30.17745656

Total depreciation = £39.00 + £37.05 + £35.1975 + £33.437625 + £31.76574375 + £30.17745656

= £206.6283253

Total depreciation = £206.6283253

Therefore,

Amount after 6 years = £780 - £206.6283253

= £573.3716747

= £573.40

The worth of the TV after 6 years is £573.40.