Zeus Industries bought a computer for $2754. It is expected to depreciate at a rate of 27% per year. What will the value of the computer be in 4 years?

Answer is $782.10

1st year - 2754 : 0.27 = 743.58 2754 - 743.58 = 2010.42

2nd year - 2010.42 : 0.27 = 542.81 2010.42 - 542.81 = 1467.61

3rd year - 1467.61 : 0.27 = 396.25 1467.61 - 396.25 = 1071.36

4th year - 1071.36 : 0.27 = 289.26 1071.36 - 289.26 = 782.10

Y=ab^t,

a=2754, b = (100-27) / 100=0.73

y=2754 (0.73^t)

y (4) = 2754 (0.73^4)

y (4) ≈$782.09 (to nearest cent)