Question

A musical instrument depreciates by 20% of its

value each year. What is the value, after 2
years, of a piano purchased new for $1200?

Answer 1

The answer is:
768
As:
1200/5=20%=240
1200-240=960 (after 1 year)
960/5=20%=192
960-192=768 (after 2 years)

Answer 2

$768 is the value of the piano after 2 years.

Explanation:

First you need to find 20% of 1,200. To do so you would need to set up a proportion.

`(20)/(100)` =
`(x)/(1200)` 20 x 1,200 = 24,000/100 = 240

Now, subtract that amount from the original 1,200 to get the amount after one year.

1,200 - 240 = 960.

Next, you need to find 20% of 960 again setting up a proportion.

`(20)/(100)` =
`(x)/(960)` 20 x 960 = 19,200/100 = 192

Finally, subtracting this amount from it's new value.

960 - 192 = 768