Question

Dione Industries bought a scanner for $800. It is expected to depreciate at a rate of 10% per year. What will the value of the scanner be in 2 years?
Answer
$648
$720
$889
$968

Answer 1

648

Answer 2

did u use your calculator

Answer 3

First year it depreciates by 10%
i. 10/100 * 800 = 80
its value after the first year is 800 -80 = 720
2nd year it depreciates also by 10%
i.e. 10/100 * 720 = 72

So its value will be 720 -72 = 648

Answer 4

No I just calculated manually

Answer 5

a minor correction:

If the number of years are too large you can create a formula easily as follows:

Let the original value be Y
Let x% be the percentage value after it depreciates.

then (x/100)^n is the percentage of the remaining true value after depreciation in n years.

Then its true value after n years is given by the following formula

y*(x/100)^n

In this case x=90 ( i.e it depreciates by 10% so the remaining percentage value is 90%)

x=90
n=2
y=800

so after 2 years its true value will be given by

800*(x/100)^2
= 800*(90*90)/(100*100)
= 9*9*8 = 648

Answer 6

Nothing wrong with the answer above, and it may be the answer anticipated by the author of the question. Sometimes, these problems are modeled by an exponential model\[V(t) =V_0 e ^{-rt}\]If you substitute for values in this problem,\[V(2)=800e ^{-.20}\approx655\]

Answer 7

thanks :)