Question

A laptop computer is purchased for 2500 . After each year, the resale value decreases by 25% . What will the resale value be after 4 years?
Use the calculator provided and round your answer to the nearest dollar.

Answer 1

Answer: the resale value would be $791 after 4 years

Step-by-step explanation:

We would apply the formula for exponential decay which is expressed as

y = b(1 - r)^x

Where

y represents the value of the laptop computer after x years.

x represents the number of years.

b represents the initial value of the laptop computer.

r represents rate of decay.

From the information given,

P = $2500

x = 4

r = 25% = 25/100 = 0.25

Therefore,

y = 2500(1 - 0.25)^4

y = 2500(0.75)^4

y = $791