A
$
B
$
C
$
D
$
Explanation
Correct answer: B.
Choice B is correct. If the stove's value depreciates by of the previous year's estimated value, then each year it retains , or , of the previous year's estimated value. Since the stove's value was $ when Thomas installed it, the estimated value after two years would be (0.80)(0.80)(\800) = $512$.
Desmos solution:
Enter in Desmos:
Reviewed and rewritten by CookSAT
Why the other choices are wrong
Choice A
Choice A is incorrect. This is the value of the stove if each year it had depreciated by of the original value rather than by of the previous year's estimated value.
Choice C
Choice C is incorrect and may be the result of a computational error.
Choice D
Choice D is incorrect. This is the estimated value of the stove year after Thomas installed it, not years.