Question

Dan bought a new computer for $900. Each year, the value of the computer decreased by 25% of the previous year's value. At this rate, what can Dan expect the approximate value of the computer to be after 8 years?

Answer 1

Answer:

$90

Step-by-step explanation:

Given data

Price= $900

Rate= 25%

Time= 8 years

Let us apply the compounding formula

A= P(1-r)^t    >>>>note that the negative sign is because of the depreciation

substitute

A= 900(1-0.25)^8

A= 900(0.75)^8

A= 900*0.100

A= $90

Hence the value of the car after 8 years will be  $90