Question

Ray industries bought a touchscreen monitor for $1200 it is expected to depreciate at a rate of 25% per year what was the value of the monitor be in three years round to the nearest dollar

Answer 1

So for this problem, we will be using the exponential equation format, which is y = ab^x. The a variable is the initial value, and the b variable is the growth/decay.

Since our touchscreen starts off at a value of 1200, that will be our a variable.

Since the touchscreen is decaying in value by 25%, subtract 0.25 (25% in decimal form) from 1 to get 0.75. 0.75 is going to be your b variable.

In this case, time is our independent variable. Since we want to know the value 3 years from now, 3 is the x variable.

Using our info above, we can solve for y, which is the cost after x years.

$y=1200*0.75^3\\y=506$

In context, after 3 years the touchscreen will only be worth $506.