Question

Barry buys a new washing machine.

Answer 1

Answer:

The machine decreases in value by 20% each year.

After 1 year the machine is worth only .8 of its original value.

The machine will only decrease by .2 * (.8 A) in the second year not .2 * A where A is the  original amount.

A1 = .8 A

A2 = .8 A1 = .64 A    value of machine after 2 years

.8 is the value Barry needs when the machine is  new

.8^n never goes to zero

After 10 years   value = .8^10 A = .11  A of its original value