a laptop computer is purchased for $1250. after each year, the resale value decreases by 30%. what will the…

a laptop computer is purchased for $1250. after each year, the resale value decreases by 30%. what will the resale value be after 4 years? use the calculator provided and round your answer to the nearest dollar.

a laptop computer is purchased for $1250. after each year, the resale value decreases by 30%. what will the resale value be after 4 years? use the calculator provided and round your answer to the nearest dollar.

Answer

Explanation:

Step1: Determine the decay - factor

The resale value decreases by 30% each year. So the decay - factor $r = 1 - 0.3=0.7$.

Step2: Use the exponential decay formula

The formula for exponential decay is $A = P(1 - r)^t$, where $P$ is the initial value, $r$ is the rate of decay, and $t$ is the number of time - periods. Here, $P = 1250$, $r = 0.3$, and $t = 4$. Substituting these values into the formula, we get $A=1250\times(0.7)^4$.

Step3: Calculate the value

First, calculate $(0.7)^4=0.7\times0.7\times0.7\times0.7 = 0.2401$. Then, $A = 1250\times0.2401=300.125$.

Step4: Round the answer

Rounding $300.125$ to the nearest dollar gives $300$.

Answer:

$300$