A laptop computer is purchased for $1150. After each year, the resale value decreases by 35%. What will the resale value be after 5 years?

Question

A laptop computer is purchased for $1150. After each year, the resale value decreases by 35%. What will the resale value be after 5 years?

Answer 1

Purchase 1,150

Year 1 = $1,150 - (1,150 * .35) = 745.50

Year 2 = $745.50 - (745.50 * .35) = 485.86

Year 3 = $485.86 - ($485.86 * .35) = 315.82

Year 4 = $315.81 - ($315.81 * .35) = 205.28

Year 5 = $205.28 - ($205.28 * .35) = 133.43

 

133.43