A musical instrument depreciates by 20% of its value each year. What

Question

A musical instrument depreciates by 20% of its value each year. What is the value, after 2 years, of a piano purchased new for $1200?

(A) $48
(B) $675
(C) $768
(D) $912
(E) $1152

callmeDP · Answer

Depreciates by 20% or Value after one year becomes 80% of existing.

Therefore, End of first year value is = 80 % of 1200 = 960$

End of second year value is = 80 % of 960 = 768 $

kntombat · Answer

Purchase price=  1200$ .

Rate of depreciation/year=  20 %,

Therefore, the value of the guitar after being depreciated for 2 years is  1200$ * 0.8*0.8 = 768$ .

Therefore,    the OA is C   .

imeanup · Answer

20 %  = \frac{1}{5} 
Depreciates, i.e  \frac{(5-1)}{5} = \frac{4}{5} 
for 2 years,  (\frac{4}{5})^2*1200= \frac{(4*4*1200*4)}{(5*5*4)} = 4*4*12*4 = 64*12= 768 
 Ans C

Nipungupta9081 · Answer

IMO C

1200 is the price

20% depriciation 1st year = 1200 * 0.2 = 240

price after 1st year = 1200 - 240 = 960

Dep. 2nd year = 960 * 0.2 = 192

Price 2nd year = 960 - 192 = 768

MathRevolution · Answer

1200 *  \frac{80}{100}  *  \frac{80}{100}  = 768

Answer C

ScottTargetTestPrep · Answer

Solution:

After 2 years, the value of the piano is:

1200 x 0.8 x 0.8 = 1200 x 0.64 = $768

Answer: C

A musical instrument depreciates by 20% of its value each year. What

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A musical instrument depreciates by 20% of its value each year. What

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