Question

Last month, Maria purchased a new cell phone for $500. The store manager told her that her new cell phone would depreciate by 70% every 6 months. Maria thinks she will want to replace her phone after a while. What will be the value (V) of her phone if she tries to trade it in after 2 years? Select all that apply. V = 500(0.70)4 V = 500(0.30)4 V = 500(0.30)2 V = 500(1 – 0.70)4 V = 0.70(500)4 V = 0.30(500)2

Answer 1

V = 500(0.70)2

Explanation:

500 has to be in the equation because it is the cost of the phone

0.70 is the value it depreciates

2 is the number of years that value depreciates