Question

The value of a vase depreciates by 30 percent each year. Today it is worth 250 pounds. How much was it worth 4 years ago?

Please help this question is killing me.

Answer 1

£ 1041.23

Explanation:

Finding the value of the object using depreciating rate:

Depreciating rate = 30% = 0.3

Let the original rate (Value of vase before 4 years) be 'x'.

We can find the value of vase before 4 years by using the formula:

Amount after 'n' years = original amount * (1 - depreciating rate)ⁿ

`x * (1-0.3)^4 = 250\\\\\\~~~~~~ x* (0.7)^4 = 250\\\\~~~~~~ x * 0.2401=250\\\\~~~~~~~~~~~~~~~~~ x = (250)/(0.2401)`

x = £ 1041.23