A computer was purchased in 2013 for $3000. Its value depreciates steadily at a rate of 25% per year. What will the computer's value be at the beginning of 2017? Give answer rounded to the nearest whole number.

Question

A computer was purchased in 2013 for​ $3000. Its value depreciates steadily at a rate of​ 25% per year. What will the​ computer's value be at the beginning of​ 2017? Give answer rounded to the nearest whole number.

d9414 · Answer

is there a specfic equation i can use?

retireed · Answer

Probably, but I don't have it memorized.  The formula is recursive and would be useful for a higher number of years...

    for this problem I would just calculate for every year

      3000 - 3000 * 0.25 =  valueAfterYearOne
      valueAfterYearOne - valueAfterYearOne * 0.25 = valueAfterYearTwo
      valueAfterYearTwo - valueAfterYearTwo * 0.25 = valueAfterYearThree
      valueAfterYearThree - valueAfterYearThree * 0.25 = valueAfterYearFOUR 

      The last one is your answer