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Colin buys a tv for £690. It depreciates at a rate of 2% per year. How much will it be worth in 6 years? Give your answer to the nearest pen
Question
Colin buys a tv for £690. It depreciates at a rate of 2% per year. How much will it be worth in 6 years? Give your answer to the nearest penny where appropriate.
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Mathematics
3 years
2021-08-23T12:47:33+00:00
2021-08-23T12:47:33+00:00 1 Answers
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Answers ( )
Answer: £611.23
Step-by-step explanation:
The tv is depreciating at a rate of 2% per year. At this rate, the value after 6 years can be acquired using the future value formula:
= Current price * (1 + growth rate) ^ no. of years
Growth rate is negative because it is depreciating:
= 690 * (1 – 2%)⁶
= 611.23124279616
= £611.23