An asset worth 100t loses 20% each year for 2 years. Find final value.
- Rates are decimals; all values are idealized models with the stated period and compounding rule.
Skills and prerequisite lessons
Working and explanation
BUILD THE REASONING
Hint 1
Hint 2
Worked solution
Express the cash flow or proportional relation before calculating.
Apply the stated relation and retain its conditions.
Depreciation applies to the remaining value each year.
The requested value is 832.
Checks and common pitfalls: Depreciation applies to the remaining value each year.
Think first. Reveal a hint when the class is ready.