a computer is purchased for 800 and each year the resale value decreases by 25% what will be the res

Discussion in 'Calculator Requests' started by math_celebrity, Feb 20, 2020.

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  1. math_celebrity

    math_celebrity Administrator Staff Member

    a computer is purchased for 800 and each year the resale value decreases by 25% what will be the resale value after 4 years

    Let the resale in year y be R(y). We have:
    R(y) = 800 * (1 - 0.25)^y
    R(y) = 800 * (0.75)^y

    The problem asks for R(4):
    R(4) = 800 * (0.75)^4
    R(4) = 800 * 0.31640625
    R(4) = $253.13
     

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