1. **State the problem:** We have a flat costing 103500 that depreciates by 2.3% each year for 3 years. We want to find its value after 3 years. 2. **Formula used:** The depreciation formula for value after $n$ years is: $$ V = P \times (1 - r)^n $$ where: - $V$ is the value after $n$ years, - $P$ is the initial price, - $r$ is the depreciation rate (as a decimal), - $n$ is the number of years. 3. **Apply the values:** Initial price $P = 103500$ Depreciation rate $r = 2.3\% = 0.023$ Number of years $n = 3$ 4. **Calculate:** $$ V = 103500 \times (1 - 0.023)^3 $$ $$ V = 103500 \times (0.977)^3 $$ 5. **Calculate the power:** $$ (0.977)^3 = 0.977 \times 0.977 \times 0.977 $$ $$ = 0.977 \times 0.977 = 0.954529 \rightarrow 0.954529 \times 0.977 = 0.932674 $$ 6. **Multiply:** $$ V = 103500 \times 0.932674 $$ $$ V = 96406.269 $$ 7. **Final answer:** The value of the flat after 3 years is approximately **96406.27**.