olivia bought a music system worth $18,000 in the year 2001. in 2003, a fire in her house destroyed the system. according to insurance, the system depreciated by 6% each year. How much was her system worth in 2003?
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olivia bought a music system worth $18,000 in the year 2001.
in 2003, a fire in her house destroyed the system. according to insurance,
the system depreciated by 6% each year. How much was her system worth in 2003?
$18,000 • (100% – 6%)2 =
$18,000 • (1.00 – 0.06)2 =
$18,000 • (0.96)2 =
$18,000 • 0.9216 = $16,588.80
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