A student received a trophy that costs $250. If the trophy's value depreciates b

A student received a trophy that costs $250. If the trophy's value depreciates by 10% each year, what will be its value after 2 years?

A student received a trophy that costs $250. If the trophy's value depreciates by 10% each year, what will be its value after 2 years?

Step 1: Start with the initial value of the trophy, which is $250.
Step 2: Calculate the depreciation for the first year. This is 10% of $250.
Step 3: To find 10% of $250, multiply 250 by 0.10. This equals $25.
Step 4: Subtract the depreciation from the initial value. $250 - $25 = $225. This is the value after 1 year.
Step 5: Now, calculate the depreciation for the second year. This is 10% of the new value, which is $225.
Step 6: To find 10% of $225, multiply 225 by 0.10. This equals $22.50.
Step 7: Subtract the second year's depreciation from the value after 1 year. $225 - $22.50 = $202.50. This is the value after 2 years.

Depreciation – Understanding how the value of an asset decreases over time, specifically through a percentage reduction each year.
Percentage Calculation – Calculating a percentage of a given value and applying it to find the new value after depreciation.
Compound Depreciation – Recognizing that depreciation can be compounded, meaning the percentage is applied to the new value each year, not the original value.