Depreciation

 In this lesson we're going to learn about depreciation. Depreciation means when something loses value.

 For example "Deuce bought a new calculator 4 years ago for $200.
If it has depreciated by 15% p.a, what is it worth now?"

 Decreased by 15% = 85% = x 0.85

 Present value = $200 x 0.85 x 0.85 x 0.85 x 0.85

                      = $200 x 0.85⁴

                      = $104