A new computer depreciates by 30% per year. It cost $4000 new. What will it be worth in 4 year?

1 Answer
Feb 24, 2018

#$960.40#

Explanation:

original price: #100%# of price

#1 = 100%#

depreciation of #30% = 100% - 30%#

#100% - 30% = 70%#

#1 - 0.3 = 0.7#

every year, the computer will be worth #70%# of its price the year before, or #0.7# times the price from the year before.

after #4# years, it will be worth #(70%)^4# of the original price.

#70% = 0.7#

#(70%)^4 = 0.7^4#

#= 0.2401#

#0.2401 *# original price #= 0.2401 * $4000#

#0.2401 * 4000 = 960.4#

#0.2401 * $4000 = $960.40#