Question

Bill buys a new lawnmower

The value of the lawnmower depreciates by 20% each year
Bill says ' after 5 years the lawnmower will have no value'
Bill is wrong Explain Why?

Answer 1

He is wrong because it is not going to be the same value every single time 20% is take off.

ex.
Lawnmower=$100-20%=80 --- Now you have to find 20% of 80 not 100 to take off of the new price, which is 16 not 20 once again

Hope This Helps