Question

Ray Industries bought a touch screen monitor for $1200. It is expected to depreciate at a rate of 25% per year. What will the value of the monitor be in 3 years? Round to the nearest dollar.

Answer 1

A=1,200×(1−0.25)^(3)
A=506.25

Answer 2

Answer:

Value of the monitor be after 3 years is $506.25 .

Step-by-step explanation:

As the exponential decrease function is written in the form .

$y = a (1 - r)^{t}$

Where a is the intial value , r is the rate of interest in the decimal form and t is the time .

As given

Ray Industries bought a touch screen monitor for $1200. It is expected to depreciate at a rate of 25% per year.

a = $1200

25% is written in the decimal form .

$= \frac{25}{100}$

= 0.25

r = 0.25

t = 3 years

Put all the values in the above

$y = 1200(1 - 0.25)^{3}$

$y = 1200(0.75)^{3}$

$y = 1200\times 0.421875$

y =  $506.25

Therefore the  value of the monitor be after 3 years is $506.25 .