1. The problem states that an item initially valued at 150000 depreciates by 10% each year. 2. Calculate the value at the end of each year using the formula for depreciation: $$V = P \times (1 - r)^n$$ where $$P$$ is the initial value, $$r$$ is the depreciation rate as a decimal, and $$n$$ is the number of years. 3. Here, $$P = 150000$$, $$r = 0.10$$, and $$n = 3$$. 4. Calculate the value after 3 years: $$V = 150000 \times (1 - 0.10)^3 = 150000 \times (0.90)^3 = 150000 \times 0.729 = 109350$$ 5. Calculate the total depreciation over 3 years: $$\text{Depreciation} = P - V = 150000 - 109350 = 40650$$ 6. So, after 3 years, the item's value is 109350 and it has depreciated by 40650.