1. Tiffany bought a phone for $350. If the value of the phone depreciates at a rate of 6% per year, what would you pay for the phone after 3 years?

Amount of phone after 3 year = $290.7 (Approx.)

Step-by-step explanation:

Given:

Amount of phone = $350

Depreciation rate = 6% = 0.06

Find:

Amount of phone after 3 year

Computation:

A = p[1-r]ⁿ

Amount of phone after 3 year = Amount of phone[1-Depreciation rate]ⁿ

Amount of phone after 3 year = 350[1-0.06]³

Amount of phone after 3 year = 350[0.94]³

Amount of phone after 3 year = 350[0.83054]

Amount of phone after 3 year = $290.7 (Approx.)