Depreciation refers to the diminishing value of an item after a period of time due to a reduction in its original quality
Mathematically depreciation can be defined as
[tex]\begin{gathered} D=P(1-R)^N \\ \text{Where} \\ D\text{ = Depreciation} \\ R\text{ = Rate of depreciation} \\ N\text{ = Period of depreciation} \\ P\text{ = Principal } \end{gathered}[/tex]D = ?
R= 6/100 = 0.06
N = 3 years
P = $6,980
Substituting all these into the formula
[tex]\begin{gathered} D\text{ = }6980(1-0.06)^3_{} \\ D=6980(0.94)^3 \\ D=\text{ 6980 }\times\text{ 0.830584} \\ D=\text{ \$5797.47632} \\ D\approx\text{ \$5797.48} \end{gathered}[/tex]Therefore, in 3 years the value of the television is approximately $5797.48
