You buy a new laptop for $1500. It decreases by 15% annually. How much is it worth after 4 years?
1. Use the formula for exponential decay:
The formula for finding the value of an asset after years with a depreciation rate (expressed as a decimal) starting from an initial value is .
In this case:
The initial value of the laptop is $.
The depreciation rate is , which in decimal form is .
The number of years is .
2. Substitute the values into the formula:
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