Question

Jasmine purchased a laptop worth $1,500 in 2007. It loses its value by %32 each year. What is the value of the laptop in 2010? Round to the nearest cent.

Answer 1

$471.65

Explanation:

-The value of the laptop after each year is calculated by the formula:

`P_t=P_o(1-d)^t`

where:

`P_t` is the value at time t

`P_o` is the initial value

`d` is the rate of depreciation

`t` is the time

#We substitute the values to solve for the value after 3 years(2010-2007=3):

`P_t=P_o(1-d)^t\\\\=1500(1-0.32)^3\\\\=\$471.65`

Hence, the value of the laptop in 2010 is $471.65