Question

Kronos Industries bought a desktop for $3,000. It is expected to depreciate at a rate of 10% per year. What will the value of the desktop be in 4 years? Round to the nearest dollar.

Answer 1

$1968

Explanation:

It will depreciate by 10% 4 times, which means that the result in the end will be $3000 * (100% - 10%) * (100% - 10%) * (100% - 10%) * (100% - 10%), or, put simply, x = $3000 * (0.9)⁴.

Power: x = $3000 * 0.6561

Multiply: x = 1968.3 ≈ $1968