Question

Computers depreciate rapidly. If a new computer that costs $1200 loses 40% of its value every year, what is its worth 5 years from now?

Answer 1

$96

Explanation:

`f(x)= a(1-r)^x`

a= initial amount

x= time in years

r= decay rate

`f(x)= 1,200(1-0.4)^5` ≈

`f(x)= 96`