Given :
Colin buys a tv for £740. It depreciates at a rate of 4% per year.
To Find :
How much will it be worth in 5 years.
Solution :
Decrease in price in 1 year is :
[tex]P = P_o- P_o\times 0.04\\\\P = 0.96P_o[/tex]
So, decrease in price after x years is :
[tex]P = (0.96)^x P_o[/tex]
Putting value of x and [tex]P_o[/tex] in above equation, we get :
[tex]P = 0.96^5\times 740\\\\P = \£\ 603.38[/tex]
Therefore, the worth of T.V after 5 years is £603.38 .
