Question

A computer is worth $400 when it is new. After each year it is worth half what it was the previous year. What will its worth be after 4 years? Round your answer to the nearest dollar.

Answer 1

The computer would be worth $25 after 4 years.

General Formulas and Concepts:
Algebra II

Exponential Function Formula:
`\displaystyle y = a(b)^x`

• a is the initial amount
• b is the ratio
• x is the amount of time

Explanation:

Step 1: Define

Identify given.

a = $400

b = 0.5

x = 4 years

Step 2: Find

1. [Exponential Function Formula] Substitute in variables:
   
   `\displaystyle y = 400 \bigg( (1)/(2) \bigg) ^4`
2. Evaluate:
   
   `y = 25`

∴ the computer's depreciated value over 4 years would sum up to $25.

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Topic: Algebra II