Advanced MathVery hardValue after repeated percent decreases
Advanced Math practice question
A machine's value falls by 20% each year. It is worth $100,000 now. What will its value be, in dollars, after 3 years?
Answer: 51200
Each year multiplies the value by 0.8: 100,000 × 0.8³ = 51,200.
Common wrong answers
- If you answered 40000
- 40,000 subtracts 20% three times from the original (60% off).
- If you answered 48800
- 48,800 is the total loss, not the remaining value.
- If you answered 64000
- 64,000 is after 2 years.
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