The price of a TV decreases by 15% every year. If after two years its price is \(\$3500\) , what is its original price?
Explanation
We call the TV's original price X and the price of the TV after one year Y. Based on the given information, we have two equations as follows:
X - (15%*X) = Y -> Y = 0.85X (1)
Y - (15%*Y) = 3500 -> 0.85*Y= 3500 -> Y= 3500/0.85 (2)
Apply (2) to (1), we have \(0.85X = \frac{3500}{0.85}\) -> \(X= 3500 \div 0.85^{2}\)= approximately 4844.
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