Question

Ray Industries bought a touch screen monitor for $1200. It is expected to depreciate at a rate of 25% per year. What will the value of the monitor be in 3 years? Round to the nearest dollar.

Answer 1

A=1,200×(1−0.25)^(3)
A=506.25

Answer 2

Value of the monitor be after 3 years is $506.25 .

Explanation:

As the exponential decrease function is written in the form .

`y = a (1 - r)^(t)`

Where a is the intial value , r is the rate of interest in the decimal form and t is the time .

As given

Ray Industries bought a touch screen monitor for $1200. It is expected to depreciate at a rate of 25% per year.

a = $1200

25% is written in the decimal form .

`= (25)/(100)`

= 0.25

r = 0.25

t = 3 years

Put all the values in the above

`y = 1200(1 - 0.25)^(3)`

`y = 1200(0.75)^(3)`

`y = 1200* 0.421875`

y = $506.25

Therefore the value of the monitor be after 3 years is $506.25 .