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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: £611.23Step-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