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 - 0.20)^? remaining amount = i(1 - r)^t enter the number that belongs in the green box.
Answer
Explanation:
Step1: Identify the formula variables
The initial value $I = 600$, the rate of depreciation $r=0.20$, and the time $t$ is the number of years. Since we want to find the value after 2 years, $t = 2$.
Step2: Substitute values into formula
The formula for depreciation is $A=I(1 - r)^t$. Substituting $I = 600$, $r = 0.20$ and $t = 2$ into the formula, we get $A=600\times(1 - 0.20)^2$. So the number in the green - box is 2.
Answer:
2