Questions on Word Problems: Money, Business and Interest answered by real tutors!

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Question 147849: The value of a computer depreciates at the rate of 18% per year. If the computer is now worth $1600, find its value 20 months ago. Give your answer to the nearest dollar. What am I supposed to do?: The value of a computer depreciates at the rate of 18% per year. If the computer is now worth $1600, find its value 20 months ago. Give your answer to the nearest dollar. What am I supposed to do?
Answer by Alan3354(565) About Me  (Show Source):
You can put this solution on YOUR website!
18% per year is 1.5% per month, which means that for each month the computer is worth .985 as much as the month before.
After 20 months, this is $1600*.985^20
= $1182.62
The answer might vary slightly if the depreciation is calculated daily, weekly or yearly, but the period wasn't specified.