Question

Collin Buys a TV for £720 depreciate at a rate of 4% per year how much will it be worth in three years

Answer 1

The worth of the TV after 3 years is £809.90208

Explanation:

The answer to given question can be found from the anual depreciation formula and solving for the Future Value (F. V.) of the machine

The given parameters of the TV are;

The amount at which Collin buys the TV, P = £720

The rate at which the TV depreciates at, R = 4%

The number of years the depreciation is applied, T = 3 years

The amount the TV is worth after three years, 'A', is given as follows;

`A = P \cdot \left(1 + (R)/(100) \right )^T`

By plugging in the known values, we have;

`A = 720 \cdot \left(1 + (4)/(100) \right )^3 = 809.90208`

The amount the TV is worth after three years, A = £809.90208