• 0 votes

A new motorbike costs £8900 

The annual rate of depreciation is 18% per year

After how many years will it be worth £2705.66

The answer is 6 but I don't understand how you get the answer??

Posted Tue 12th June, 2012 @ 18:30 by Ameenah:)

1 Answer

  • 1 vote

If you let the number of years be x, then 8900*0.82^x=2705.66

I would first try x= 2, which is 5984.36 (which is roughly double 2705.66)

then I would do x=4, which is 4023...(which is still too big)

then x=6, which is £2705.66

Hope that helps but...... if anyone knows a better way, please tell me! :D

Answered Tue 12th June, 2012 @ 18:37 by Dilly