Problema Solution
in 2014 you buy an iphone for $500 and it depreciated at 17% per year. what is the value in 2018
Answer provided by our tutors
in 2014 the value is $500
in 2015 the value is 500 - 0.17*500 = 500(1 - 0.17)
in 2016 the value is 500(1 - 0.17) - 0.17*500(1 - 0.17) = 500(1 - 0.17)^2
and so on
500(1 - 0.17)^4 = $237.29
the value in 2018 is $237.29.