SOLUTION: 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?

Question 868514: 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?
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
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?
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After 1 yr, it's $1200 - (20/100)*1200
= $1200*0.8 = $960
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After 2 yrs, it's $960 - (20/100)*960
= $960*0.8 = $768
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Or,
= $1200*0.8^2
= $768
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