Question

Rhonda bought a new laptop for $600. The laptop depreciates, or loses, 10% of its value each year. The value of the laptop at a later time can be found using the formula A=P(1-r)^t, where P is the original value, r is the rate of depreciation written as a decimal, and t is the number of years since it was purchased. What will the laptop be worth in two years?

Answer 1

Original price of the laptop = P = $600

Rate of depreciation = r = 10% = 0.10

Time in years = t = 2

We have to find the worth of the laptop after 2 years. The given formula is:

$A=P(1-r)^{t}$

Using the given values, we get:

$A=600(1-0.10)^{2} \\ \\ A=\ 486$

Thus, the laptop will worth $486 in two years