Math1

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You buy a new computer for $2100. The computer is decreases by 5% annually. When will the computer have a value of $600?


Y = a(1+r/n)^n(t)

  • Math1 -

    Y = 5.25

  • Math1 -

    You want t years, where

    2100(0.95)^t = 600
    0.95^t = 2/7
    t = log(2/7)/log(0.95) = 24.42

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