a musician buys a piano for $5,000. if the value of the piano depreciates by 20% every year, what is the…

a musician buys a piano for $5,000. if the value of the piano depreciates by 20% every year, what is the value of the piano after 5 years? remaining amount = ?(1 - )^ remaining amount = i(1 - r)^t enter the number that belongs in the green box.

a musician buys a piano for $5,000. if the value of the piano depreciates by 20% every year, what is the value of the piano after 5 years? remaining amount = ?(1 - )^ remaining amount = i(1 - r)^t enter the number that belongs in the green box.

Answer

Explanation:

Step1: Identify the initial - value

The initial value $I$ of the piano is the purchase price. Here, $I = 5000$. This value goes in the green box in the formula $Remaining\ Amount=I(1 - r)^t$.

Step2: Identify the rate of depreciation

The rate of depreciation $r$ is given as 20% or 0.2 in decimal form.

Step3: Identify the time - period

The time $t$ is 5 years.

Answer:

5000