Touch screen is $850. What will the value be in 5 years if it decays at a rate of 35%

Question

Ray Idusties bought a touch screen monitor for $850. The monitor is expected to depreciate at a rate of 35% per year. What will the value of the monitor be in 5 years?

Answer 1

A = a₀(r)^t, where a₀ = starting amount, r = rate, t = time

A = 850(0.65)⁵       a decrease of 35% means only 65% of the value remains

A ≈ 850(0.1160)

A ≈ 98.62

 

The value of the monitor is approximately $98.62.