Mathematics

Question

Ray Industries bought a touch screen monitor for $1200. It is expected to depreciate at a rate of 25% per year. What will the value of the monitor be in 3 years? Round to the nearest dollar.

2 Answer

  • A=1,200×(1−0.25)^(3)
    A=506.25
  • Answer:

    Value of the monitor be after 3 years is $506.25 .

    Step-by-step explanation:

    As the exponential decrease function is written in the form .

    [tex]y = a (1 - r)^{t}[/tex]

    Where a is the intial value , r is the rate of interest in the decimal form and t is the time .

    As given

    Ray Industries bought a touch screen monitor for $1200. It is expected to depreciate at a rate of 25% per year.

    a = $1200

    25% is written in the decimal form .

    [tex]= \frac{25}{100}[/tex]

    = 0.25

    r = 0.25

    t = 3 years

    Put all the values in the above

    [tex]y = 1200(1 - 0.25)^{3}[/tex]

    [tex]y = 1200(0.75)^{3}[/tex]

    [tex]y = 1200\times 0.421875[/tex]

    y =  $506.25

    Therefore the  value of the monitor be after 3 years is $506.25 .

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