Answer: the computer towers will be worth $10521 after 8 years
Step-by-step explanation:
We would apply the formula for exponential decay which is expressed as
A = P(1 - r)^t
Where
A represents the value of the computer towers after t years.
t represents the number of years.
P represents the initial value of the computer towers.
r represents rate of decay.
From the information given,
P = $30900
r = 12.6% = 12.6/100 = 0.126
Therefore, the function that models the value of the computer towers after (t)years from now is
A = 30900(1 - 0.126)^t
A = 30900(0.874)^t
Therefore, when t = 8 years, then
A = 30900(0.874)^8
A = $10521
