Question

A woman bought a stove for $2800. After using it for 2 years she decided to trade in the stove. The company estimated a depreciation of 15% for the first year of its use and a further 15% on its reduced value, for the second year.
i.) Calculate the value of the stove after two years.
ii.) Express the value of the stove after two years as a percentage of the original value. (5mks)

Answer 1

Answer:

$1719.55, 61.4%

Step-by-step explanation:

Original price of stove:  $2,800

Value of stove after 1 year:  (1 - 0.15)($2,800), or 0.85($2,800) = $2,380

Value of stove after 2 years:  0.85($2,380) = $1719.55

Find the ratio of this last result to the original price and convert that to a  percentage:

$1,719.55

-------------- = 0.614, or approximately 61.4%

 $2,800