Question

The value of a motorbike depreciates by 32% per year. Work out the current value of a motorbike bought 5 years ago for £3600

Answer 1

$\bf \qquad \textit{Amount for Exponential Decay} \\\\ A=P(1 - r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{initial amount}\to &3600\\ r=rate\to 32\%\to \frac{32}{100}\to &0.32\\ t=\textit{elapsed time}\to &5\\ \end{cases} \\\\\\ A=3600(1-0.32)^5\implies A=3600(0.68)^5\implies A\approx 523.41601$