Question

Nicholas bought a new computer for $1,250. The value of the computer decreases by 17 percent every year. Approximately how much is the computer worth after 5 years?

Answer 1

Answer: The computer worth $ 492.38 after 5 years.

Step-by-step explanation:

If the value of an item depreciates by r% then the value of the item after t years is given by :-

$V=V_0(1-\dfrac{r}{100})^{t}$

, where $V_0$ = initial value.

Given: $V_0$ =$1,250, r=17% , t= 5 years

Then, the value of computer after 5 years = $1250(1-\dfrac{17}{100})^5$

$=1250(0.83)^5\\\\=1250(0.39390)\\\\\approx492.38$

Hence, the computer worth $ 492.38 after 5 years.