#### Explanation:

Note that the decrease is compounded. the amount by which the value drops changes every year. Use the formula for compound interest.

$V = P {\left(1 - r\right)}^{n} \text{ } \leftarrow$ r is the % as a decimal

$V = 1200 {\left(1 - 0.27\right)}^{3}$

$V = 1200 {\left(0.73\right)}^{3}$

V = $466.82 The same result would be obtained by showing the decrease every year, for 3 years. Find 73% of the value of the previous year. Value = 1200 xx 73% xx 73% xx73% V =$466.82