Question

Computer towers purchased for $30900 depreciates at a constant rate of 12.6% per year. Write the function that models the value of the computer towers after (t)years from now. What will the computer towers be worth after 8 years

Answer 1

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