Question

A laptop computer is purchased for $1500 after each year the resale value decreases by 25% what will the resale value be after three years

Answer 1

Answer:

The resale value after three years = $ 632.8125‬

Explanation:

Given the laptop purchase for $1500

Therefore, the cost price = $1500

According to the question, the resale value decreases by 25%,

Then after three years, the resale value is

Resale Value = $\text { cost Price }\left(1-\frac{r}{100}\right)^{\text {time }}$

Substituting the values,

Resale Value = $1500\left(1-\frac{25}{100}\right)^{3}$

Resale Value = $1500\times (\frac{3}{4})^3$

Resale Value = $1500\times \frac{3}{4}\times \frac{3}{4}\times \frac{3}{4}$

Resale Value = $632.8125‬

Therefore, the resale value after three years = $ 632.8125‬