Question

A laptop is purchased for $2200. After each year, the resale value decreases by 35%. What will the resale value be after four years?

round your answer to the nearest dollar

Answer 1

The depreciation factor is 100-35=65%=0.65.
So the total depreciation after 4 years is 0.65⁴=0.1785 approx.
Apply this to the purchase price: 0.1785×2200=$393 to the nearest dollar.