Question

Every computer that a business owner purchases will lose most of its value after 5 years of use. The owner plans to purchase a computer for $2,100 and replace it after 4 years.Part BMethod 2 of determining the computer's value is to reduce its value by 30% after each year of use.Which function, g(n), represents the value of the computer after years of use for Method 2?g(n) = 0.3n(2,100)g(n) = 0.7 (2.100)g(n) = 2.100(0.3)^ng(n) = 2.100(0.7)^n

Answer 1

D. g(n)=2100(0.7)^nD. g(n)=2100(0.7)^

Explanation:

• The purchase price, i.e. the initial value of the computer = $2100.

,

• The rate at which its value reduces = 30%.

To determine the computer's value after n years of use, we use the depreciation formula below:

`A(n)=P(1-r)^n`

In this case:

• The Principal, P = $2100

,

• The rate, r = 30%

Substitute these values into the formula.

`\begin{gathered} g(n)=2100(1-30\%)^n \\ =2100(1-(30)/(100))^n \\ =2100(1-0.3)^n \\ \implies g(n)=2100(0.7)^n_{} \end{gathered}`

The function g(n) that represents the value of the computer after n years of use is Option D.