Question

You buy a cell phone for $ 200 . The value y decrease by 30% each year. What would be the value of the cell phone in 2 years?

Answer 1

Answer:

The present value after 2 years is $98

Explanation:

Given

$a = 200$

$r = 30\%$

$t = 2$

Required

Determine the new value

This is calculated using:

$y = ab^t$

Where b =

$b = 1 - r$

This gives:

$b = 1-30\%$

$b = 1-0.30$

$b = 0.70$

So:

$y = ab^t$

$y =200 * 0.70 ^2$

$y =98$

The present value after 2 years is $98

Answer 2

Answer:

$98

Explanation:

It is the "Correct Answer"