On federal income tax returns, self-employed people can depreciate the value of business equipment. Suppose a computer valued at $2765 depreciates at a rate of 30% per year. Estimate the number of years it will take for the computer's value to be less than $350.

Can someone possibly help with this? Pretty Please :)

Question

On federal income tax returns, self-employed people can depreciate the value of business equipment. Suppose a computer valued at $2765 depreciates at a rate of 30% per year. Estimate the number of years it will take for the computer's value to be less than $350. 

Can someone possibly help with this? Pretty Please :)

anonymous · Answer

use a function of P, price and T, time P(t)= original price(1-depreciation rate)^t

anonymous · Answer

Did you understand what I just said?

anonymous · Answer

Yes thank you!

anonymous · Answer

Since it says estimate, you don't have to be so exact.
To depreciate 30% per year...multiply by 0.7 (which is 1 - 0.3) for each year
2765 * .7 is about....well 3000 * .7 is 2100...so about 2000 ???
2000 * .7 is about 1400....that's 2 years
keep multiplying by .7...how many times is it til you get to 350? that's your estimate

anonymous · Answer

Or just keep multiplying by .7 on your calculator til you get below 350..That's probably the best way to estimate this.

anonymous · Answer

It's going to be tedious as you have to count, if you don't know logarithms use garrett's way of doing it if you do know logarithms use my way.

anonymous · Answer

So about 7 years

anonymous · Answer

Thank you you guys are awesome!

anonymous · Answer

No problem.

anonymous · Answer

I would say 6 years. When I multiply 2765 by 0.7 six times...that brings it down to 325