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A laptop computer is purchased for US$850. After each year, the resale value decreases by 35%. What will the resale value be after 3 years?Use the calculator provided and round your answer to the nearest dollar.

Question

A laptop computer is purchased for US$850. After each year, the resale value decreases by 35%. What will the resale value be after 3 years?Use the calculator provided and round your answer to the nearest dollar.

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Solution

Sure, let's solve this step by step.

  1. Initial Value: The initial purchase price of the laptop is $850.

  2. Annual Depreciation: The resale value decreases by 35% each year. This means that after each year, the laptop retains 65% (100% - 35%) of its value from the previous year.

  3. Value After 1 Year: Value after 1 year=850×0.65 \text{Value after 1 year} = 850 \times 0.65 Value after 1 year=552.50 \text{Value after 1 year} = 552.50

  4. Value After 2 Years: Value after 2 years=552.50×0.65 \text{Value after 2 years} = 552.50 \times 0.65 Value after 2 years=359.13 \text{Value after 2 years} = 359.13

  5. Value After 3 Years: Value after 3 years=359.13×0.65 \text{Value after 3 years} = 359.13 \times 0.65 Value after 3 years=233.44 \text{Value after 3 years} = 233.44

  6. Rounding to the Nearest Dollar: Resale value after 3 years233 \text{Resale value after 3 years} \approx 233

So, the resale value of the laptop after 3 years will be approximately $233.

This problem has been solved

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