Question

A home stereo depreciates by 20% each year. What’s the value of a stereo, purchased new for $1,200, after two years?

Answer 1

1200(1-(x*.2))=720.
but i am not sure if the 1200 is the original price(before depreciation) or the price he paid for.

Answer 2

it is \(12,000(.8)^2\)

Answer 3

thx smoke
thx satellite ... btw how did u come up wit that?