Kronos Industries bought a desktop for $3,000. It is expected to depreciate at a rate of 10% per year. What will the value of th e desktop be in 4 years? Round to the nearest dollar.
1 answer:
Answer:
$1968
Step-by-step explanation:
It will depreciate by 10% 4 times, which means that the result in the end will be <em>$3000 * (100% - 10%) * (100% - 10%) * (100% - 10%) * (100% - 10%)</em>, or, put simply, <em>x = $3000 * (0.9)⁴</em>.
Power: x = $3000 * 0.6561
Multiply: x = 1968.3 ≈ $1968
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