Question 1160346: A computer that was purchased for $1,200 is now worth $450. If it is depreciating at a rate of 9% per
year, how old is the computer?
Answer by Alan3354(69443)   (Show Source):
You can put this solution on YOUR website! A computer that was purchased for $1,200 is now worth $450. If it is depreciating at a rate of 9% per
year, how old is the computer?
-------------------
Each year, it's worth 91% of the previous year, = 0.91 times as much.
450 = 1200*(0.91)^y ---- y = years
0.91^y = 450/1200 = 3/8
---
y*log(0.91) = log(3/8)
y = log(0.375)/log(0.91)
y =~ 10.4 years
|
|
|
