Question

A $10,500 investment has a 15% loss each year. How do you determine the value of the investment after each of the following years: 1,2,4, and 10?

Answer 1

This one is in depreciation.. and leaving the one year one....... all need annually one..... the depreciation annually formula is
`p[1-r/100]^t`
where p is principal
r is rate
t is time
One year one
`10,500[1-15/100]^1`
Remember it is not necessary to use this formula.... as it's one year
`10,5cancel00xx85/(1cancel00)`
`105xx85`
`8925` is the value after one year
Two year one
`10,500[1-15/100]^2`
Notice not much has changed
`10,5cancel00xx(cancel85^17xx85)/(cancel100^20xx1cancel00)`
`105xx17xxcancel85^17/cancel20^4`
That gives us
`7586.25` is the value after two years depreciation
Now you get the drill..... Try to do it yourself