Answer to Question #304963 in Algebra for badshah

Question

The value of a delivery van depreciates at the rate of 15% per year. Show that

annual depreciation follows a geometric progression, and use this progression

to determine the value of the van after three years, if it is purchased for $4500?

Answer 1

After $n-$th years the value is equal to $4500(1-\frac{15}{100})^n=4500\cdot 0.85^n,$ and hence annual depreciation follows a geometric progression.

After three years the value is equal to

$4500\cdot 0.85^3\approx 2763.53$