Gwb asked:
A company had a total debt of $320,000 in 1980. Between 1980 and 1987 it was able to reduce its debt 15% each year. Approximate the company’s debt in 1987 to the nearest $1000.
A company had a total debt of $320,000 in 1980. Between 1980 and 1987 it was able to reduce its debt 15% each year. Approximate the company’s debt in 1987 to the nearest $1000.
320,000 x .15 = 48,000 paid year 1
320,000-48,000 =272,000
272,000 x .15 = 40800 paid = 41000 rounded
272,000 – 41,000 = 231,000
231,000 x .15 =
do it for the 7 years, and you’ll get a final debt. try it out for yourself. its how you learn