Question

How much is a computer worth after 10 years if its value, initially £860, decreases by 4% each year?​

Answer 1

£571.76

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To find the value after 10 years, we can use the formula:

• 
  `N = I *(1 - r)^t`

where,

• N - new value,
• I - initial value,
• r - rate of decrease, as fraction (4% = 0.04),
• t - time in years.

Plugging in the given values:

• 
  `N = 860*(1 - 0.04) ^(10)=571.76`

So, the value of the computer will be £571.76.

Answer 2

571.756067

Explanation:

compound interest