Question

If you buy a phone for $500 and its value decreases by 50% each year, what is it worth

at the end of 2 years?
O $10
$0
O $125
$250

Answer 1

Ok so first year it decreases by 50% so 500 x 0.5.
0.5 is short for 50% as it’s half of one.

Second year: 250 x 0.5 = 125.

At the end of two years the phone is worth $125.