A new phone cost £679
The value of the phone decreases at a rate of 4% per year - Edexcel - GCSE Maths - Question 7 - 2022 - Paper 2
Question 7
A new phone cost £679
The value of the phone decreases at a rate of 4% per year.
Work out the value of the phone at the end of 3 years.
£
Worked Solution & Example Answer:A new phone cost £679
The value of the phone decreases at a rate of 4% per year - Edexcel - GCSE Maths - Question 7 - 2022 - Paper 2
Step 1
Calculate the value decrease for one year
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Answer
To find the value of the phone after one year, we start by calculating the depreciation. The phone decreases by 4% of its current value.
Thus, the value decrease after one year is:
679×0.04=27.16
Therefore, the value of the phone at the end of year 1 is:
679−27.16=651.84
Step 2
Calculate the value at the end of year 2
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Answer
We repeat the same process for year 2, using the value from the end of year 1:
651.84×0.04=26.07
Therefore, the value of the phone at the end of year 2 is:
651.84−26.07=625.77
Step 3
Calculate the value at the end of year 3
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Answer
Finally, we calculate the value at the end of year 3, again using the value from the end of year 2:
625.77×0.04=25.03
Therefore, the value of the phone at the end of year 3 is:
