SOLUTION: 5.Zeus Industries bought a computer for $2538. It is expected to depreciate at a rate of 20% per year. What will the value of the computer be in 4 years? Round to the nearest

Algebra ->  Logarithm Solvers, Trainers and Word Problems -> SOLUTION: 5.Zeus Industries bought a computer for $2538. It is expected to depreciate at a rate of 20% per year. What will the value of the computer be in 4 years? Round to the nearest       Log On


   

Question 1002741: 5.Zeus Industries bought a computer for $2538. It is expected to depreciate at a rate of 20% per year. What will the value of the computer be in 4 years?

Round to the nearest penny. Do not type the "$" sign in your answer
Answer by fractalier(6550) About Me  (Show Source):
You can put this solution on YOUR website!
Since it loses 20% per year, it retains 80% per year, so value V is
V = 2538 * (.80)^4
V = $1039.56