Question

The value of a computer is $1200. It loses 20% of its value every year. Write a function the represents the value y (in dollars) of the computer after t years. The find the value of the computer after 5 years.

Answer 1

y = 1200(.80)^t  Plug in 5 for t (time).

y = 1200(.80)^5

.80^5= 0.33

0.33 x 1200 = 395

Therefore, the value of the computer after 5 years has deteriorated to $396.