A business purchases a computer system for $5,300. The value of the system decreases at a rate of 12% per year. In how many year
1 answer:
Answer:
7
Step-by-step explanation:
If a system decreases by 12% it's the same as multiplying it by .12-1 or .88
This means we can create the following equation
computer value=5300(.88)^n
where n is the number of years
We can then plug in the value of the computer and solve for n
2200=5300(.88)^n
Divide by 5300 and get
.415=.88^n
Then put this into log form and get
Evaluate this into your calculator and get n=6.69 which I would probably just round to 7
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The person would have to leave the money in the bank for 7.8 years for it to reach 13,500 dollars.
Step-by-step explanation:
Step 1; First we must calculate how much interest is generated for a single year. The annual interest rate is 4.5% i.e. 4.5% of 10,000 dollars which equals 0.045 × 10,000 = 450 dollars a year. As the years pass, more and more will be put into the account due to interest.
Step 2; For there to be 13,500 dollars in the bank account we need to calculate how much money is added due to interest.
The money needed to be added through interest = 13,500 - 10,000 = 3,500 dollars.
So we need to determine how long it will take for the bank to add 3,500 dollars by adding 450 dollars a year.
The number of years to reach 13,500 dollars = = 7.777 years. By rounding this value to the nearest tenth, we get 7.8 years.