Can someone explain the answer to this question for me? I know the answer is $218.70?

Question

If a $300 typewrite loses 10% of its value each year, what is its value after 3 years?

Answer 1

Basically, after each year, the typewriter is worth 90% of what it was worth the year before. So to determine the value after 3 years, take the original value and multiply it by 90% to the third power:

300 * .9 * .9 * .9 = $218.70.

Hope that helps out.

Answer 2

This is known as depreciation.

Depreciation refers to the fact that assets with finite lives lose value over time. In other words, your brand new typewriter won't operate as well as the same typewriter 5 years from now.

In your case, the typewriter is only 90% as effective as the year before (another way of saying it loses 10% each year).

Math:

Year 1: $300*.9 = $270
Year 2: $270 * .9 = $243
Year 3: $243 * .9 = $218.70

Answer 3

Value of typewriterafter 1yr=300(1-10/100)
=300.90/100=$270.00
value of typewriter after 2 yr=270(1-10/100)
=270.90/100=$243
value after 3 yr=243(1-10/100)=243.90/100
=$ 218.70 ans

Answer 4

After the first year your value drops $30. The value is now $270. Your value goes down $27 after the second year, which brings the value of the typewriter to $243. After the third year, you lose $24.30 in value. Thus, 300-30=270. 270-27=243. 243-24.30=218.70

Answer 5

At the start, the amount is $300. In the 1st yr, it loses 10% of itself.
10% of $300=10/100*300=$30.
So at the end of the 1st yr, the amount becomes $(300-30)=$270.
[Since there is a loss of a certain percentage of money from the original value, 1st find what that percentage value stands as in terms of the monetary value, and then subtract that from the val.]
Again, the 2nd yr is started with $270. As in the 1st yr, in the 2nd yr too, there is a loss of 10% of the amount ie 10% of $270=$27
The amount thus becomes $(270-27)=$243.
Similarly, the 3rd yr is started with $243.
10% of $243=$24.30.
So, the amount finally becomes $(243-24.30)=$218.70.

Hope that helps.

Answer 6

The 1st year subtract $30 (10% of $300), second year $27 (10% of $270) and third $24.3 (10% of $243) you will come to the amount $218.30. The key words here are " loses 10% of ITS VALUE EACH year". The right way to do the math are as shown in previous replies

Answer 7

End of year 1, value = $270
End of year 2 , value = $270 - $27 = $243
End of year 3 , value = $243 - $24.30 = $218.70

Answer 8

It is 300 *.9 * .9 *.9 = 218.70. Every year it is worth .9 of its previous year's worth. Th eformula is DC = C*RV^Y

Depreciated cost = Cost * Residual Value (1 - rate of depreciation) to the power of the number of years.