Question

laptop computer is purchased for 1600 after each year the resale value decreases by 25% what will the resale value be after 4 years? use the calculator provided and round your answer to the nearest dollar

Answer 1

$506

Explanation:

Since the value goes down by 25% each year, each new value is 75% of the previous value.

New: $1600

After 1 year: 75% × $1600 = $1200

After 2 years: 75% × $1200 = $900

After 2 years: 75% × $900 = $675

After 2 years: 75% × $675 = $506.25

Answer: $506