Question

An investment decreases by 2% per year for 3 years. By what total percent does it decrease after the 3 years?

Answer 1

so if your initial investment is...$8000
decrease of 2% means after one year:
well 2% or 8000 = $160, yeah?
so a decrease of 2% means
8000 - 160 = $7840

another way to write this would be:
$8000 x 98% (or 0.98)
so 8000 x 0.98 = 7840 ... after 1 year...

so u can do this for all 3 years of depreciation in one equation if u like:

so $8000 x 0.98 x 0.98 x 0.98 = total investment worth after 3 yrs
= ...@bethany94 ?

Answer 2

@bethany94 ?