if a furniture bought 3 years ago has a book value of 1950.00 what is its original price if it depreciates 20% a year

Question

how do you find its original price??

Answer 1

With depreciation of 20%, each year's price is 80% of the year before. 

 

0.8³p = 1950

0.512p = 1950

p = 3808.6

 

$3808.60