Alex buys a top of the line computer. He did not realize that the computer would lose value so fast. If his computer cost $1800.00 and it depreciates at a rate of 45% each year, in how many years will it be worth less than 1/3 of what he paid for it?

(1) Answers

This can be solve by using the formulaD = P( 1 – i)^nWhere d is the depreciation value after n yearsP is the initial valuei is the depreciation raten is the yearsD = 1/3 ( 1800)D = 600So600 = 1800 ( 1- 0.45)^nSolve for nN = 1.83 years

Add answer