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7 votes
7 votes
1. Tiffany bought a phone for $350. If the value of the phone depreciates at a rate of 6%

per year, what would you pay for the phone after 3 years?

User Mithun Biswas
by
2.5k points

1 Answer

18 votes
18 votes

Answer:

Amount of phone after 3 year = $290.7 (Approx.)

Explanation:

Given:

Amount of phone = $350

Depreciation rate = 6% = 0.06

Find:

Amount of phone after 3 year

Computation:

A = p[1-r]ⁿ

Amount of phone after 3 year = Amount of phone[1-Depreciation rate]ⁿ

Amount of phone after 3 year = 350[1-0.06]³

Amount of phone after 3 year = 350[0.94]³

Amount of phone after 3 year = 350[0.83054]

Amount of phone after 3 year = $290.7 (Approx.)

User Zeeshan Chaudhary
by
3.0k points