Answer:
£3591
Step-by-step explanation:
Brian buys a computer for £3600. It depreciates at a rate of 5% per year. How much will it be worth in 2 years? Give your answer to the nearest penny where appropriate.
The formula for Depreciation rate =
P = Po × e^-rt
P = Amount after depreciation
Po = Initial amount = £ 3600
r = depreciation rate = 5% = 0.05
t = time in years = 2
Hence:
P = £3600 × e ^ -0.05 × 2
P =£ 3600 × e-0.0025
P = £ 3591.0112406
Approximately = £3591
