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:
Where:
- is the value of the computer after years.
- is the initial price (in this case, $1,300).
- is the rate of depreciation (25% = 0.25).
- is the number of years (15 years).
Now, substituting the values:
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:
- How does the depreciation rate affect the computer's value over time?
- If the computer had a depreciation rate of 20%, what would its value be after 15 years?
- How would you model the depreciation of a car that loses value at a different rate?
- What are the real-life implications of exponential decay in consumer electronics?
- 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