$25,000 purchase decreases 12% in value per year. How do you determine the value of the purchase after 1yr, 3yrs, 5yrs, 7yrs?

1 Answer

See answers below

Explanation:

Given that the value of purchase decreases by 12% every year.

The value of purchase after 1 year

=25000(1-12/100)=$22000

The value of purchase after 3 years

=25000(1-12/100)^3=$17036.8

The value of purchase after 5 years

=25000(1-12/100)^5=$13193.298

The value of purchase after 7 years

=25000(1-12/100)^7=$10216.89