Math Problem Statement

Barry just read that his computer, which costs $1,300 new, loses 25% of its value every year. If this estimate is accurate, how much will the computer be worth in 15 years? If necessary, round your answer to the nearest cent. $

Solution

To determine the value of Barry's computer after 15 years, we need to apply the formula for exponential decay, which is:

V=P(1r)tV = P(1 - r)^t

Where:

  • VV is the value of the computer after tt years.
  • PP is the initial price (in this case, $1,300).
  • rr is the rate of depreciation (25% = 0.25).
  • tt is the number of years (15 years).

Now, substituting the values:

V=1300(10.25)15V = 1300(1 - 0.25)^{15} V=1300(0.75)15V = 1300(0.75)^{15} V1300(0.0133)V \approx 1300(0.0133) V17.29V \approx 17.29

So, after 15 years, the computer will be worth approximately $17.29.

Let me know if you would like any more details or if you have questions!


Here are five related questions for further exploration:

  1. How does the depreciation rate affect the computer's value over time?
  2. If the computer had a depreciation rate of 20%, what would its value be after 15 years?
  3. How would you model the depreciation of a car that loses value at a different rate?
  4. What are the real-life implications of exponential decay in consumer electronics?
  5. How could we calculate the value of the computer after 10 years using the same formula?

Tip: Understanding the concept of exponential decay is crucial in many real-world applications, such as calculating the depreciation of assets like cars, electronics, or machinery!

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Math Problem Analysis

Mathematical Concepts

Exponential Decay
Percentage Depreciation
Algebra

Formulas

V = P(1 - r)^t

Theorems

Exponential Decay Theorem

Suitable Grade Level

Grades 9-12