Question

Rhonda bought a new laptop for $800. The laptop depreciates, or loses, 20% of its value each year. The value of the laptop at a later time can be found using the formula A=P(1−r)t AP 1 r t , where P is the original value, r is the rate of depreciation written as a decimal, and t is the number of years since it was purchased. What will the laptop be worth in two years?

Answer 1

As per the problem,

Rhonda bought a new laptop for $800.

The laptop depreciates, or loses, 20% of its value each year.

The value of the laptop at a later time can be found using the formula

$A=P(1-r)^t.....(1)$

Here we have

P=$800

r=20%=0.20

t=2 years

Substitute the values in equation (1) we get

$A=800(1-0.2)^2\\ \\ \Rightarrow A=800(0.8)^2\\ \\ \Rightarrow A=800*0.64\\ \\ \Rightarrow A=512$

The laptop be worth in two years will be $512.