Question

A laptop computer costs $356.75 when it is new . The value of the computer is expected to change by -11 3/4% per year. What is the expected value to the nearest cent of tge computer after 3 years?

Answer 1

To find the expected value of the laptop after 3 years, we need to calculate the change in value for each year and then subtract that from the original value. The expected value of the computer after 3 years is $230.96 to the nearest cent.

Step-by-step explanation:

To find the expected value of the laptop after 3 years, we need to calculate the change in value for each year and then subtract that from the original value. The change in value is given as -11 3/4% per year, which can be converted to a decimal as -0.1175.

First, calculate the change in value for each year:

1. Change in value after 1 year = $356.75 * -0.1175 = $-41.93
2. Change in value after 2 years = $356.75 * -0.1175 = $-41.93 (same as year 1)
3. Change in value after 3 years = $356.75 * -0.1175 = $-41.93 (same as year 1 and 2)

Next, subtract the change in value for each year from the original value:

Value after 1 year = $356.75 - $41.93 = $314.82

Value after 2 years = $314.82 - $41.93 = $272.89

Value after 3 years = $272.89 - $41.93 = $230.96

Therefore, the expected value of the computer after 3 years is $230.96 to the nearest cent.