Merlin industries bought a laptop for $2100. It is expected to depreciate at a rate of 14% per year. What will the value of the laptop be in 5 years? Round to the nearest dollar.

Question

Mathematics

Jazmin Paul

31 May, 04:53

Merlin industries bought a laptop for $2100. It is expected to depreciate at a rate of 14% per year. What will the value of the laptop be in 5 years? Round to the nearest dollar.

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Babe · Answer 1

This is exponential growth/decay function, in this case decay, of the form:

f=ir^t, f=final value, i=initial value, r=common ratio or "rate", and t=times rate is applied or "time".

In this case i=2100 and r = (100-14) / 100=0.86 so the equation is:

f=2100 (0.86^t) and in five years ...

f (5) = 2100 (0.86^5)

f (5) ≈$987.90 (to nearest whole cent)