Question

Eileen purchased a dishwasher for $750. It depreciates about 0.9% each year. What is the value of the dishwasher after seven years? (2 points) a $798.55 b $743.25 c $746.07 d $704.01

Answer 1

Depreciation formula: starting value x (1 - percent of decrease)^years

Change 0.9% to a fraction by dividing by 100:

0.9/100 = 0.009

750 x (1-0.009)^7

750 x 0.991^7 = $704.01

The answer is $704.01