a chef buys a blender for $600. if the value of the blender depreciates by 20% every year, what is the value…

a chef buys a blender for $600. if the value of the blender depreciates by 20% every year, what is the value of the blender after 2 years? remaining amount = 600(1 - 0.20)^2 remaining amount = $? round your answer to the nearest whole number.

a chef buys a blender for $600. if the value of the blender depreciates by 20% every year, what is the value of the blender after 2 years? remaining amount = 600(1 - 0.20)^2 remaining amount = $? round your answer to the nearest whole number.

Answer

Explanation:

Step1: Calculate the value after the first - year depreciation

The formula for depreciation is $A = P(1 - r)^n$, where $P$ is the initial value, $r$ is the rate of depreciation, and $n$ is the number of years. Here, $P = 600$, $r=0.20$, and $n = 1$. After the first - year, the value $V_1=600\times(1 - 0.20)=600\times0.80 = 480$.

Step2: Calculate the value after the second - year depreciation

Now, this $V_1$ becomes the principal for the second - year depreciation. So, $P = 480$, $r = 0.20$, and $n = 1$. The value after the second - year $V=480\times(1 - 0.20)=480\times0.80=384$. Or we can directly use the formula $A = 600\times(1 - 0.20)^2=600\times0.8^2=600\times0.64 = 384$.

Answer:

384