Question

A laptop computer is purchased for $2450. After each year, the resale value decreases by 30%. What will the resale value be after 3 years? Use the calculator provided and found your answer to the nearest dollar.

Answer 1

Answer: $840.35

Explanation:

You multiply 2,450 by 0.7 then multiply the answer by 0.7 and multiply that answer by 0.7 as well.

Answer 2

$840

Explanation:

This is an example of a compound percentage change.

To work this out you should multiply $2450 by 0.70 to the power of 3.

You would multiply by 0.70 as you are decreasing the amount by 30%. And so by multiplying the amount by 0.70 you are decreasing it by 30% and by doing it to the power of 3 you are decreasing it 3 times.

`2450*0.70^(3) =840.35`