Answer:
The percentage decrease in three years is -19.6%
Explanation:
Here, given that we have a percentage decrease of 7% per year, we want to calculate the value of the percentage decrease in 3 years
Mathematically, the decrease amount can be modeled by the equation;
A = I ( 1 - r)^t
where A is the amount after a specific number of t years
I is the original worth which is 80,000
r is the percentage of decrease per year = 7% and is 7/100 = 0.07
t is the number of years = 3
The amount after 3 years will be;
A = 80,000(1 - 0.07)^3
A = 80,000(0.93)^3
= 64,348.56
Percentage decrease in value over 3 years will be;
(64,348.56 - 80,000)/80,000 * 100%
= -15,651.44/80,000 * 100% = -19.5643 %
The percentage decrease in three years is -19.6%