Question

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)

Answer 1

Y = 5.25

Answer 2

You want t years, where

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