Rhonda bought a new laptop for $500

Question

. The laptop depreciates, or loses,10%
of its value each year. The value of the laptop at a later time can be found using the formula A=P(1-r)^t
, where P is the original value, r is the rate of depreciation written as a decimal, and t is the number of years since it was purchased. What will the laptop be worth in two years?

In two years, the laptop will be worth $

Answer 1

To find the value of the laptop after two years, we can use the formula provided:

\[ A = P(1 - r)^t \]

Where:

• \( P \) is the original value of the laptop ($500)
• \( r \) is the rate of depreciation (10%, or 0.10 as a decimal)
• \( t \) is the number of years (2)

Plugging in the values:

\[ A = 500(1 - 0.10)^2 \] \[ A = 500(0.90)^2 \] \[ A = 500(0.81) \] \[ A = 405 \]

Thus, the laptop will be worth $405 in two years.