The value after 20 years is $ 723.514
Solution:
Formula for Amount compounded annually is as follows:
Where,
"A" is the total amount
"p" is the principal sum
"r" is the rate of interest
"n" is the number of years
From given question,
p = $ 300
r = 4.5 %
n = 20 years
Substituting the values we get,
Thus value after 20 years is $ 723.514
PART 2)
2. Given data
Cost of bicycle = $150
Depreciation = 15%
Firstly let us calculate 15% of $150
(15/100)*150 =0.15*150
= $22.5
Since the value depreciated
We will minus the the depression from the initial amount
New amount = 150-22.5=
$127.5
