Question

You buy a new graphing calculator for $125. Graphing calculators hold their value very well, and only depreciate

at a rate of 0.5% per year. How much will your calculator be worth in 5 years when you are done using it in
college?

Answer 1

Depreciation formula :

Amount x (1-rate)^time

125 x (1-0.005)^5

124 x 0.995^5 = 121.91

Answer: $121.91