Question

Nicholas bought a new computer for $1,250. The value of the computer decreases by 17 percent every year. Approximately how much is the computer worth after 5 years?

Answer 1

Answer: The computer worth $ 492.38 after 5 years.

Explanation:

If the value of an item depreciates by r% then the value of the item after t years is given by :-

`V=V_0(1-(r)/(100))^(t)`

, where
`V_0` = initial value.

Given:
`V_0` =$1,250, r=17% , t= 5 years

Then, the value of computer after 5 years =
`1250(1-(17)/(100))^5`

`=1250(0.83)^5\\\\=1250(0.39390)\\\\\approx492.38`

Hence, the computer worth $ 492.38 after 5 years.