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28 June, 07:29

Zeus Industries bought a computer for $2593. It is expected to depreciate at a rate of 30% per year. What will the value of the computer be in 3 years?

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  1. 28 June, 07:47
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    First year:

    .3 x 2593 = 777.9

    $2593 - $777.90 = $1815.10

    Second year:

    .3 x 1815.10 = 544.53

    $1815.10 - $544.53 = $1270.57

    Third year:

    .3 x 1270.57 = 381.171

    $1270.57 - $381.171 = $ 889.39900

    $889.39900 rounded to the nearest hundredth is $889.40
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