Answer: In 5 years it will be worth £455
Step-by-step explanation:
Step 1
Given
The cost of the T.V. for Colin = £530.
The rate of depreciation per year = 3%
Time/ period = 5 years
Formulae to be used
F = P X (1 - r) ^ n
where
F = the future value after depreciation
P = the present value.
r =the interest rate per time period
n = the time/ periods
Step 2--- SOLVING
F = P X (1- r) ^ n
F= 530 x (1-0.03) ^ 5
=530 x 0.858734
=£455.129
Rounding up to the nearest penny where appropriate = £455
