Question

Frank purchased an air conditioner for $3000. Its value depreciates at a rate of 8% each year. How much will the air conditioner cost in 3 years? Round your answer to the nearest dollar. PLEASE reply ASAP!

Answer 1

$2280

Explanation:

Given: Cost of Air conditioner= $3000.

Rate of depreciation= 8%

Number of year= 3 years.

Now, finding the depreciation for 3 years.

Depreciation=
`(Cost\ of\ air\ conditioner* rate\ of\ depreciation* years)/(100)`

Amount of depreciation=
`(\$ 3000* 8* 3)/(100) = \$ 30* 24`

∴ Amount of depreciation in 3 years is $720.

Cost of Air conditioner after 3 years=
`Original\ cost - Amount\ of\ depreciation`

⇒ Cost of Air conditioner after 3 years=
`\$ 3000-\$ 720= \$ 2280.`

∴ Cost of Air conditioner in 3 years is $2280.

Answer 2

The cost of air conditioner after 3 years is $2336 .

Explanation:

Given as :

The purchased price of air conditioner = p = $3000

The depreciated rate of air conditioner = r = 8% each year

The time period of depreciation = t = 3 years

Let The cost of air conditioner after 3 years = $A

Now, According to question

The cost of air conditioner after t years = purchased price of air conditioner ×
`(1-(\textrm rate)/(100))^(\textrm time)`

Or, The cost of air conditioner after 3 years = p ×
`(1-(\textrm r)/(100))^(\textrm t)`

Or, A = $3000 ×
`(1-(\textrm 8)/(100))^(\textrm 3)`

Or, A = $3000 × (0.92)³

Or, A = $3000 × 0.77868

∴ A = $2336.04

So, The cost of air conditioner after 3 years = A = $2336.04

Hence, The cost of air conditioner after 3 years is $2336 . Answer