Question

I’m struggling with math and could use a little help

Answer 1

Given:

Purchased Value = $29,500

Value decreased by 20%

Time = 5 year

Find-: Value after 5 years.

Sol:

Value decreased by 20% that mean:

$\begin{gathered} \text{ If price is 100 so decreasing price =80} \\ \\ \text{ So price is 1 then decreasing price = }\frac{80}{100} \\ \\ =0.80 \end{gathered}$

Unit price decreased by 0.80 so decreasing price after one year is:

$=29500\times0.80$

Decreasing price after 2 year is:

$=29500\times0.80\times0.80$

So decreasing value after "t" year is:

$P(t)=29500(0.80)^t$

Decreasing value after 5 year is:

$\begin{gathered} P(t)=29500(0.80)^t \\ \\ P(5)=29500(0.80)^5 \\ \\ P(5)=29500\times0.32768 \\ \\ P(5)=9666.56 \end{gathered}$

So the price is after 5 years 9666.56