Question

Based on her past experiences, a homeowner estimates that appliances lose 27% of their

resale value each year. If her estimate is accurate, how much will an appliance currently
valued at $1,128 be worth in 10 years?

Answer 1

$48.48

Explanation:

Using compound depreciation

time

amount × percentage^

10

1128 × 0.73^ =48.477

Answer 2

Explanation:

If the LOSE 27% per year, they RETAIN 100- 27 = 73% (.73 in decimal) per year

after ten years :

$ 1128 ( .73)^10 = $48.48