# The value of a $1,200 computer decreases 27% annually. What will be the value of the computer after 3 years?

##### 1 Answer

Mar 31, 2017

#### Explanation:

Note that the decrease is compounded. the amount by which the value drops changes every year. Use the formula for compound interest.

The same result would be obtained by showing the decrease every year, for 3 years. Find

Value =