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

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Answer 1 · 2018-07-28T05:58:37

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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#