Question

Dan bought a new computer for $900. Each year, the value of the computer decreased by 25% of the previous year’s value. At this rate, what can Dan expect the approximate value of the computer to be after 7 years?

Answer 1

If you’re looking for the vale after 8 years, I got $90 but I’m not sure if I’m right .

Explanation:

Answer 2

$120.14

Explanation:

This question is an example of a compound percentage decrease.

To work this out you would first need to convert the percentage of 25 into a decimal. You can do this by dividing the percentage of 25 by 100, this gives you 0.25. This is because percentages are out of 100.

The next step is to minus 0.25 from 1, this gives you 0.75. This is because we are working out the percentage decrease.

The final step is to multiply the amount of 900 by 0.75 to the power of 7, this gives you $120.14.

1) Divide 25 by 100.

`25/100=0.25`

2) Minus 0.25 from 1.

`1-025=0.75`

3) Multiply 900 by 0.75 to the power of 7.

`900*0.75^7=120.14`