Let's first consider: the fact that a new computer loses 1/2 of its value
  ⇒ third choice and fourth choice are eliminated
 ⇒ because of the graph project the computer's value as growing over 
 years
Now let's try to set up an equation:
After 1st year ⇒ Computer's value = 

After 2nd year ⇒ Computer's value = 

After 3rd year ⇒ Computer's value =

 
 ..... (Hopefully you see a pattern)
After x year ⇒ Computer's value = 

Therefore, the equation is: 

 ⇒that means the graph has to exponentially decreasing as it has 
 an exponent (meaning the function is exponential) and a base less 
 than 1 (meaning that the function is decreasing)
Answer: Choice (1)
Hope that helps!