16.5k views
0 votes
You bought an Apple MAC that costed $1500. The device depreciates 20% yearly. What is the Decay Factor (base)?

User Hardgraf
by
8.2k points

1 Answer

1 vote

Final answer:

The decay factor for an Apple MAC depreciating at 20% yearly is 0.80, representing 80% of the device's value that remains after each year.

Step-by-step explanation:

The depreciation of an Apple MAC that costs $1500 at a rate of 20% yearly involves finding the decay factor. The decay factor represents the percentage of the item's value that remains after each year. In this case, if the device depreciates by 20% each year, 100% - 20% = 80% of its value remains.

To express this as a decay factor (base), you use the remaining percentage in decimal form. Therefore, the decay factor is 0.80. This means that each year, the device will be worth 80% of its value from the previous year.

User Juanjo Vega
by
8.0k points