Question

Kronos industries bought a desktop for $3000. it is expected to depreciate at a rate of 10% per year. what will the value of the desktop be in 4 years? round to the nearest dollar.

Answer 1

Ok so the starting price is 3000.
After each year the value would decrease by 10%, in other words it will depreciate.

After 1st year
3000 * .10 = 300
3000 - 300 = 2700

After 2nd year
2700 * .10 = 270
2700 - 270 = 2430

After 3rd year
2430 * .10 = 243
2430 - 243 = 2187

After 4th year
2187 * .10 = 218.7
2187 - 218.7 = 1968.3

Rounding to the nearest dollar, the value of the desktop after 4 years would be $1,968

Answer 2

actually , 10 % deprecation means ,

10  will be 9    ------eq (1)

for 4 years,  taking equation (1)  to power of 4

10000  will be 6561

so, value after 4 years will be = 3000 X ( 6561/10000)  
                                                = 1968.3 $  = 1968 $ (nearly) 


:)