Hi!
The compound interest formula is:
Final amount (A)= Original Amount x [tex](1 + \frac{Rate}{100})^{time} [/tex]
The rate is the amount of interest.
In this question, your rate is decreasing so it is [tex]100 - 23 = 77[/tex]
When measuring depreciation, the formula for compound interest changes to:
Original Amount x [tex](1 - \frac{Rate}{100})^{time} [/tex]
This would mean that the answer to one year would be figured out by the following equation:
15000 x [tex](1 - \frac{23}{100} )^1[/tex] , this would bring the result out to be $11550
(the time is one as there is only one year for part A).
As for part B, the time is changed to three years so the [tex] ^{time} [/tex] factor is changed to three, making the formula the following:
15000 x [tex](1 - \frac{23}{100} )^3[/tex] which would make the answer $6848.
Hope this helped!
