Question

Brian buys a computer for £4300. It depreciates at a rate of 3% per year. How much will it be worth in 6 years? Give your answer to the nearest penny where appropriate.

Answer 1

In 6 years, the cost of the computer would be £3581.2

Explanation:

Brian buys a computer for £4300.. This means that the initial cost of the computer is £4300. It depreciates at a rate of 3% per year. Therefore, rate,

r = 3/100 = 0.03

Let x represent the amount that the computer depreciates to after t years. Therefore

Current amount = initial amount(1 - rate)^time. Therefore,

x = 4300(1 - 0.03)^6

x = 4300(0.97)^6 = £3581.2

Answer 2

3526

Explanation:

4300×3%=129

129×6=774

4300_774= 3526