$25,000 purchase decreases 12% in value per year. How do you determine the value of the purchase after 1yr, 3yrs, 5yrs, 7yrs?

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Answer 1 · 2018-07-28T05:58:37

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Given that the value of purchase decreases by $12 %$ $12%$ every year.

The value of purchase after $1$ $1$ year

$= 25000 (1 - \frac{12}{100}) = $ 22000$ $=25000(1-12/100)=$22000$

The value of purchase after $3$ $3$ years

$= 25000 {(1 - \frac{12}{100})}^{3} = $ 17036.8$ $=25000(1-12/100)^3=$17036.8$

The value of purchase after $5$ $5$ years

$= 25000 {(1 - \frac{12}{100})}^{5} = $ 13193.298$ $=25000(1-12/100)^5=$13193.298$

The value of purchase after $7$ $7$ years

$= 25000 {(1 - \frac{12}{100})}^{7} = $ 10216.89$ $=25000(1-12/100)^7=$10216.89$