The value of a TV set, which was purchased in January 2019, depreciates at 12% per annum. If its value in January 2021 is â¹4,840, what was its purchase price?
Points to Remember: Depreciation is the decrease in the value of an asset over time. Straight-line depreciation and declining balance depreciation are common methods. This problem uses a declining balance method (compound depreciation). The formula for compound depreciation is: Future Value = Present Value * (1 – depreciation rate)^number of years Introduction: Depreciation is a … Read more