Eight years ago, Rudi bought some stock for 1000$. It's value decreased by 15% each year. How much is the stock worth now?

Question

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Answer 1

Depreciation:  V = P(1-r)ⁿ

V = current value

P = beginning value = 1000

r - depreciation rate = .15

n = # times calculated = 8

 

V = 1000(1-.15)⁸

V = 1000(.85)⁸

V = $272.49