Find the value of a Mobile Phone after 2 years if it costs $1600 new and depreciates at 12% p.a.

To find the value of the mobile phone after 2 years, we can use the formula for depreciation:

\[
\text{Value after } t \text{ years} = \text{Initial Value} \times (1 - \text{Depreciation Rate})^t
\]

Given:
- Initial Value = $1600
- Depreciation Rate = 12% per annum = 0.12
- Time $ t $ = 2 years

Now, let's calculate the value:

\[
\text{Value after 2 years} = 1600 \times (1 - 0.12)^2
\]

\[
= 1600 \times (0.88)^2
\]

\[
= 1600 \times 0.7744
\]

\[
= 1239.04
\]

The value of the mobile phone after 2 years is **$1239.04**.

Would you like further details or have any questions?

Here are 5 related questions:
1. How would the value change if the depreciation rate was 15% instead of 12%?
2. What would be the value after 3 years at the same depreciation rate?
3. Can you calculate the total depreciation amount after 2 years?
4. What if the depreciation was compounded monthly instead of annually?
5. How would the value be affected if there was no depreciation in the first year?

**Tip:** Depreciation can be calculated using different compounding intervals (monthly, quarterly, etc.), which might slightly change the final value.

Learn how to calculate the value of a mobile phone after 2 years with an initial value of $1600 and a depreciation rate of 12% per annum. Follow the step-by-step solution using the depreciation formula. Explore related questions about depreciation rates and time intervals.

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