Question

Edith purchased a stove for $950. It depreciates about 0.7% each year. What is the value of the stove after six years?

Answer 1

Just like compound interest.

950 * (1 - 0.007)^6

Answer 2

I did that, and that answer comes to 614. which isnt an option in the multiple choice

Answer 3

You must look more closely.

7.0% requires 1 - 0.07 -- This is not what the problem states.
0.7% requires 1 - 0.007 -- This is not what you did.

Answer 4

OHHHH . oh my gosh , thank you !