Question

7. The value of a computer has a decay factor of 0.85 per year. After 2 years, the computer is worth $1445. What was the original value of the computer?

Answer 1

$ 2000

Explanation:

Let the original value be $ X

Decay factor = 0.85

Time = 2 years

Reduced value = $ 1445

Now,

Reduced value = original value * (decay)
`{}^(number \: of \: years)`

Plug the values

`1445 = x * {(0.85)}^(2)`

Evaluate the power

`1445 = x * 0.7225`

`x = (1445)/(0.7225)`

Calculate

`x = 2000`

Hope this helps...

Best regards!!

Answer 2

$64222.22

Explanation:

If we call the original value as x, we can write:

1445 = x * (0.15)² (Note: We write 1 - 0.85 = 0.15 and not 0.85 because 0.85 is the decay factor)

1445 = 0.0225x

x ≈ 64222.22