document.write( "Question 583266: Jasmine buys a computer for $1200. The computer depreciates at a rate of 40% a year, compounded monthly. How much is the computer worth in 18 months?\r
\n" ); document.write( "\n" ); document.write( "I know the formula for compounded monthly is A=P(1+r/n)^n*t
\n" ); document.write( "so I tried A=1200(.6/12)^(12*1.5) but the answer I got was wrong.\r
\n" ); document.write( "\n" ); document.write( "Thanks \n" ); document.write( "
Algebra.Com's Answer #372392 by Alan3354(69443)\"\" \"About 
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Jasmine buys a computer for $1200. The computer depreciates at a rate of 40% a year, compounded monthly. How much is the computer worth in 18 months?\r
\n" ); document.write( "\n" ); document.write( "I know the formula for compounded monthly is A=P(1+r/n)^n*t
\n" ); document.write( "so I tried A=1200(.6/12)^(12*1.5) but the answer I got was wrong.
\n" ); document.write( "----------------------------
\n" ); document.write( "It's value decreases 40%/year = 40%/12 = 01%/3 = 0.1/3 per month.
\n" ); document.write( "Each month, it's worth (1 - 0.1/3 = 2.9/3) of the month before.
\n" ); document.write( "Worth = 1200*(2.9/3)^18
\n" ); document.write( "=~ $651.87
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\n" ); document.write( "The term \"compounded monthly\" doesn't fit here. The problem is not well stated. It should have said it depreciates 40/12% per month.
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