PErcentage Decrease #8

Question

Assume the value of an iPod decreases at a rate of 8% per year.

If you purchase an iPod for $200, how much will it be worth in 4 years?
 (Round to the nearest whole number.)

Answer 1

200 x (0.92)⁴ = 143$ [rounded]

 

The explanation is kind of hairy though. But nobody answered this question and it seems too easy. But basicaly, we want to find 92% of the original value. Since, each year, the value changes; we are really taking 92% of 92% of 92% of 92% of the original value. Hence, the exponent 4.