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The problem asks for the resale value of a laptop that decreases by 25% each year, starting with an initial price of $1250. The goal is to determine the value after 4 years.

This can be solved using the formula for exponential decay:

\[
V(t) = P \times (1 - r)^t
\]

Where:
- $ P = 1250 $ (initial price)
- $ r = 0.25 $ (25% depreciation per year)
- $ t = 4 $ (time in years)
  
Let's calculate the resale value after 4 years.

\[
V(4) = 1250 \times (1 - 0.25)^4
\] 

\[
V(4) = 1250 \times (0.75)^4
\]

I'll calculate this now.The resale value of the laptop after 4 years, given a 25% yearly depreciation, will be approximately **$396**.

Would you like more details or have any questions?

Here are 5 related questions to expand on this topic:
1. How would the resale value change if the depreciation rate was 20% instead of 25%?
2. What would the resale value be after 5 years instead of 4 years?
3. How can we express the depreciation of the laptop as a function of time?
4. How does exponential decay compare to linear depreciation in terms of long-term value?
5. What is the impact of different depreciation rates on high-cost electronics like laptops?

**Tip:** When calculating depreciation, always check if the rate applies to the original price or the reduced value year after year (exponential decay).

A laptop computer is purchased for $1250. After each year, the resale value decreases by 25%. What will the resale value be after 4 years?

Learn how to calculate the resale value of a laptop after 4 years, given a 25% annual depreciation. This step-by-step solution covers exponential decay, percentage decrease, and the use of the formula V(t) = P * (1 - r)^t.

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