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A sofa depreciates at 20% of its original value each year. If the sofa was $349 at its time of purchase, what is the value of the sofa after 4 years? Round your answer to the nearest cent.

1 Answer

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Answer:

$142.95

Explanation:

Given Original value of the sofa = $349

Rate of depreciation each year = 20%

Number of years = 4

To find the value of the sofa after 4 years use depreciation formula:

If the constant decrease in population be R% per annum. Then the population after n years is
P *\left(1-(R)/(100)\right)^(n)


349 *\left(1-(20)/(100)\right)^(4)=349 *\left((100-20)/(100)\right)^(4)


=349 *\left((80)/(100)\right)^(4)


=349 *\left((4)/(5)\right)^(4)

= 142.9504

= 142.95 (Nearest cent)

Hence, the value of sofa after 4 years is $142.95.

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