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Answer on Algebra Question for Sarah

Question #894
The value of some computer equipment depreciates at a rate of 15% for every year after its initial purchase. The initial cost of the equipment was $8,500
<br>a. Write an exponential function that will give the value of the equipment at any time t, where t is in years.<br>b. How much will the computer equipment be worth in 2 years?<br>c. How long will it take for the computer equipment to have a value of $2000?
Expert's answer
a. P = $8,500*(1-0.15)t
b. P (t=2) = $8,500*0.852 = $6,141.25;
c. $2000 = $8,500*0.85t;
0.85t = 0.2353;
t = ln(0.2353)/ln(0.85) = 8.9 years.

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