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anonymous

  • 5 years ago

A business purchases a computer system for $3000. If the value of the system decreases at a rate of 15% per year, how much is the computer worth after 4 years?

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  1. anonymous
    • 5 years ago
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    you multiply by .85 repeatedly, so 3000*.85^4 .85 because 100% = 1.00 and 15% decrease = 1.00 - .15 = .85

  2. anonymous
    • 5 years ago
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    Wait huh? :I

  3. anonymous
    • 5 years ago
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    what part is confusing, I'll try to make it make sense...

  4. anonymous
    • 5 years ago
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    3000 * .85 = 2550 (after one year) 2550 * .85 = 2167.5 (after two years) but look, 2550 = 3000*.85, so after the second year can be found by: (3000*.85)*.85 which equals 3000*.85^2 so after 4 years, the exponent becomes a 4

  5. anonymous
    • 5 years ago
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    Each year its value decrease by 15% of its original value. In 4 years, it will decrease by 4*15%=60%. That means it will cost just 40% of its original value. So, its value after 4 years is: (40/100)*3000=$1,200

  6. anonymous
    • 5 years ago
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    No, the answer is not 1200

  7. anonymous
    • 5 years ago
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    because it is not losing 15% of 3000 each year. the second year, you lose 15% of a smaller number.

  8. anonymous
    • 5 years ago
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    OMG, Stick with tonks :)

  9. anonymous
    • 5 years ago
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    By AnwarA's calculation, you would have no money after 8 years, but you can lose 15% for ever

  10. anonymous
    • 5 years ago
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    Aha, I'm still trying to figure the problem out myself

  11. anonymous
    • 5 years ago
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    Monie, does using .85 make sense?

  12. anonymous
    • 5 years ago
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    Yea it does

  13. anonymous
    • 5 years ago
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    okay, then do it out slowly instead of any shortcuts

  14. anonymous
    • 5 years ago
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    But why .85?

  15. anonymous
    • 5 years ago
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    oh, if there were no change, you would have 100% the next year. Since there is a 15% decrease, you have 15% less than 100%, or 85% next year. Then move the decimal over to turn a percent into something you can multiply with for .85

  16. anonymous
    • 5 years ago
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    I end up with 0.7225...Is that correct? .-.

  17. anonymous
    • 5 years ago
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    hmmm, 3000*.85 = year 1 (3000*.85)*.85 = year 2 ((3000*.85)*.85)*.85 = year 3 (((3000*.85)*.85)*.85)*.85 = year 4 = 3000*.85*.85*.85*.85 = ...

  18. anonymous
    • 5 years ago
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    do you see why each step works? What do you get?

  19. anonymous
    • 5 years ago
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    I get 1556.01875.... But I'm guessing it to be 1556? Correct?

  20. anonymous
    • 5 years ago
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    I think you should keep it to the penny, 1556.02

  21. anonymous
    • 5 years ago
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    yes, do you get the .85 and the repeated multiplying?

  22. anonymous
    • 5 years ago
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    Yes I do :). THank you so very much for helping me Tonks.

  23. anonymous
    • 5 years ago
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    ur welcome

  24. anonymous
    • 5 years ago
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    One more question if you don't mind? (:

  25. anonymous
    • 5 years ago
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    If it is a math problem, post it as a new thread

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