A community for students.

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing


  • 5 years ago

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 companys debt in 1987 to the nearest 1000

  • This Question is Closed
  1. gw2011
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    The answer to the nearest 1000 is $103,000 which is for the end of 1987 . Here is how you can calculate it: (D)(0.85)^7 where D = the total debt (0.85)^7 = the amount of debt remaining which is taken to the power of 7 since the debt is reduced each year beginning in 1981 and going to the end of 1987 which is 7 years. Therefore, the formula can now be used as follows: (D)(0.85)^7 = ($320,000)(0.85)^7 = $102,584.67 and to the nearest 1000 the answer is $103,000. I've assumed that the total debt at the end of 1980 is $320,000 and that the debt is to be calculated for the end of 1987.

  2. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...


  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.