Question

Zeus Industries bought a computer for $2754. It is expected to depreciate at a rate of 27% per year. What will the value of the computer be in 4 years?

Answer 1

Answer is $782.10
1st year —2754 ÷ 0.27 = 743.58         2754 – 743.58 = 2010.42 
2nd year— 2010.42 ÷ 0.27 = 542.81   2010.42 – 542.81 = 1467.61 
3rd year — 1467.61 ÷ 0.27 = 396.25   1467.61 – 396.25 = 1071.36 
4th year — 1071.36 ÷ 0.27 = 289.26   1071.36 – 289.26 = 782.10

Answer 2

Y=ab^t, 

a=2754, b=(100-27)/100=0.73

y=2754(0.73^t)

y(4)=2754(0.73^4)

y(4)≈$782.09  (to nearest cent)