You bought a guitar 6 years ago for $400. It's value decreases by about 13% per year. Write a formula to show the value of the guitar over those six years and determine its current value

Question

Mathematics

Jakob Dillon

16 March, 06:46

You bought a guitar 6 years ago for $400. It's value decreases by about 13% per year. Write a formula to show the value of the guitar over those six years and determine its current value

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Answers (1)

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Zayden Woodward · Answer 1

This would be a depreciation formula

which is value = Original price x (1-percent change) ^time

using the information from the problem

Value = 400 x (1-0.13) ^6

value = 400 x 0.87^6

value = $173.45