A laptop computer is purchased for $1100 . After each year, the resale value decreases by 25% . What will the resale value be after 3 years?
Mathematics · High School · Thu Feb 04 2021
Answered on
Given the statement:
A laptop computer is purchased for $1100 . After each year, the resale value decreases by 25% .
Determine the value after 3 years.
Solution:
The value of the laptop can be determined by using the formula.
Future amount = Original amount (1 - rate)^time
Future amount = $1100 (1 - 0.25)^3
Future amount = $1100 (0.75)^3
Future amount = $1100 (0.421875)
Future amount = $464.06
Final answer:
Future amount = $464.06