SOLUTION: A laptop computer is purchased for $2600. Each year, its value is 80% of its value the year before. After how many years will the laptop computer be worth $900 or less?

Question 1150745: A laptop computer is purchased for $2600. Each year, its value is 80% of its value the year before. After how many years will the laptop computer be worth $900 or less?
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
A laptop computer is purchased for $2600. Each year, its value is 80% of its value the year before. After how many years will the laptop computer be worth $900 or less?
-----------------
After 1 year, it's $2600*0.8 = $2080
After 2 years, it's $2080*0.8 = $1664
etc
-------------
FV = $2600*(0.8^t) --- t in years
$900 = $2600*0.8^t
9/26 = 0.8^t
Log(9/26) = t*log(0.8)
t = log(9/26)/log(0.8) = ~4.7542 years
---> 5 years
=================
Not a well stated problem.
The answer can be "after 10 years" or after any # of years t > 4 (t as an integer).
You can answer "after 1000 years" and not be wrong.
RELATED QUESTIONS
A laptop computer is purchased for $1200 . Each year, its value is 70% of its value the... (answered by rfer,josmiceli,MathTherapy)

A laptop computer is purchased for $5000 . Each year, its value is 70% of its value the... (answered by Boreal)

A laptop computer is purchased for . Each year, its value is of its value the year... (answered by Alan3354,ikleyn)

A laptop is purchased for 4700. Each year, its value is 70% of its value the year before. (answered by Fombitz)

a computer company is purchased $1700. each year , its value is 75% of its value the year (answered by fion23)

A laptop computer is purchased for $2700. Each year its value decreases by 20%. After... (answered by LinnW)

A laptop is purchased for $4800. Each year its value is 75% of its value the year before. (answered by solver91311)

A laptop computer is purchased for $1500. Its value each year is about 80% of its value... (answered by josmiceli)

A laptop computer is purchased for $1350 . After each year, the resale value... (answered by Alan3354)