Question

You buy a touch iPod for $200, but it loses value at a rate of 10% each year. How much is your phone worth after 3 years?

Answer 1

$266.20

Explanation:

o=200

r=.1

t=3

w=200(1+.1)^3

w=200(1.331)=266.2

Answer 2

145.8

Explanation:

200 times .9 times .9 times .9

Because it is 3 years