2. V = Vo(1-r)^n.
a. V = 1500(1-0.21)^6 = $364.63
b. V = 1500(1-0.21)^n = 60.
1500(0.79)^n = 60,
0.79^n = 60/1500 = 0.04, n*Log0.79 = Log0.04,
n = Log0.04/Log0.79 = 13.7 Years.
If Rick has $500 In his account after 4 years investing at 2.5% per year , how much money did he deposit initially ? Use =A =P (1+ r/n)
2). Your new laptop cost $1500 but depreciates in value by about 21% each year.
a) How,much will your laptop be worth in 6 years ? Use A= Pe . ( Remember; Is r posting or negative if it is depreciating ? )
b) About how long will it take before your laptop is worth only $60?
1 answer
1 answer