Question

Dwayne purchased a computer from Techtronic's, Inc. for $2,600 in 2007. The rate of

depreciation is 7%. Which would be the best estimate for the value of the computer in

2010?

Answer 1

Answer:

$\ 2091.3$

Step-by-step explanation:

Let P denotes initial value of the product, r% is the annual depreciation rate and t denotes time period.

Depreciation (d) = $P(1-\frac{r}{100})^t$

Put $P=\ 2,600,\,r\%=7\%,\,t=3$ years

Therefore,

 $d=P(1-\frac{r}{100})^t\\\\=2600(1-\frac{7}{100})^3 \\\\=2600(\frac{93}{100})^3\\\\=\ 2091.3$