Question

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Colin buys a tv for £810.
It depreciates at a rate of 3% per year.
How much will it be worth in 3 years?
Give your answer to the nearest penny where appropriate.
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Answer 1

Simple interest/Interest = £72.9

Explanation:

We have to find the simple interest at this point.

So use the formula:

I = prt or I = p x r x t

I = amount of interest

P = principal amount (810)

R = interest rate (in years) (.03)

T = amount of time in (years) (3)

All we need to do is multiply.

I = (810)(.03)(3)

I = £72.9

Answer 2

I=72.9

Explanation:

I=PRT When P= the principal=810, R=rate=3% and T=time(by year)=3 years

I=810*3/100*3

I=24.3*3

I=72.9