a chef buys a blender for $600. if the value of the blender depreciates by 20% every year, what is the value…

a chef buys a blender for $600. if the value of the blender depreciates by 20% every year, what is the value of the blender after 2 years? remaining amount = 600(1 - ?)^ remaining amount = i(1 - r)^t enter the number that belongs in the green box.

a chef buys a blender for $600. if the value of the blender depreciates by 20% every year, what is the value of the blender after 2 years? remaining amount = 600(1 - ?)^ remaining amount = i(1 - r)^t enter the number that belongs in the green box.

Answer

Explanation:

Step1: Identify the rate of depreciation

The rate of depreciation $r$ is $20%$ or $0.2$ in decimal form. So the value in the green - box is $0.2$.

Step2: Identify the exponent

The time $t$ is 2 years, so the exponent in the formula $I(1 - r)^t$ is 2.

Step3: Calculate the remaining amount

We substitute $I = 600$, $r=0.2$ and $t = 2$ into the formula $I(1 - r)^t$. [ \begin{align*} \text{Remaining Amount}&=600\times(1 - 0.2)^2\ &=600\times0.8^2\ &=600\times0.64\ &=384 \end{align*} ]

Answer:

The number in the green box is $0.2$ and the value of the blender after 2 years is $$384$.