Rachel S.

asked • 04/14/16

compound interest the answer I got is 5,062.6 which I believe is wrong

Compound interest
a company bought a van that had a value of £12,000.
Each year the value of the van depreciates by 25%.
Work out the value of the van at the end of three years.

2 Answers By Expert Tutors

By:

Andrew M. answered • 04/14/16

Tutor
New to Wyzant

Mathematics - Algebra a Specialty / F.I.T. Grad - B.S. w/Honors

Rachel S.

Thankyou very much :) I'm revising for my year 11 exam and that was a B grade question in my booklet 
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04/14/16

Philip P. answered • 04/14/16

Tutor
4.9 (484)

Effective and Patient Math Tutor

Rachel S.

Thankyou so much, I have never seen that formula before though
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04/14/16

Philip P.

It's the standard formula to express exponential decay, and depreciation is an exponential decay
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04/14/16

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