Answer:
$79.10
Step-by-step explanation:
We are given the information that the fax machine is $250. By depreciating at a rate of 25% each year, what will the value be in 4 years? To solve this problem, we can use a general decline formula as shown below:
[tex]A=P(1-r)^t[/tex]
A = total amount
P = original amount
r = growth rate (decimal)
t = years
Before we plug in the values, don't forget to change 25% to its decimal form.
25% -> [tex]\frac{25}{100}[/tex] -> 0.25
Now, lets plug in the values.
[tex]A=250(1-0.25)^4[/tex]
[tex]a=79.10[/tex]
The value of the fax machine in 4 years will be $79.10.
