a musician buys a guitar for $450. if the value of the guitar depreciates by 30% every year, what is the…

a musician buys a guitar for $450. if the value of the guitar depreciates by 30% every year, what is the value of the guitar after 6 years? remaining amount = 450(1 - 0.30)^ remaining amount = i(1 - r)^t enter the number that belongs in the green box

a musician buys a guitar for $450. if the value of the guitar depreciates by 30% every year, what is the value of the guitar after 6 years? remaining amount = 450(1 - 0.30)^ 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 $I = 450$, the rate of depreciation $r=0.30$, and the time $t = 6$. The formula for depreciation is $A = I(1 - r)^t$.

Step2: Substitute values into the formula

The expression for the value of the guitar after 6 years is $450(1 - 0.30)^6=450\times0.7^6$.

Step3: Calculate $0.7^6$

$0.7^6=0.7\times0.7\times0.7\times0.7\times0.7\times0.7 = 0.117649$.

Step4: Calculate the final value

$450\times0.117649 = 52.94205\approx52.94$.

Answer:

$6$