Question

Mandy bought a desktop computer system to start her business from home for $4,995. It is expected to depreciate at a rate of 10% per year. After how many years will the value of her home computer system depreciates to approximately $2150

Answer 1

8.43 years

Explanation:

Given data

Cost price P= $4995

Rate r= 10%

FInal amount A= $2150

The expression for the time/duration is given as

t= ln(A/p)/r

t= ln(2150/4995)/0.1

t= ln(0.430)/0.1

t= 0.843/0.1

t= 8.43

Hence the time it will take is 8.43 years