A computer was purchased in 1996 for $2500. Its value in current dollars depreciates steadily at a rate of 30% per year. What will the computer's value be at the beginning of 2003?
A) $205.89
B) $301.20
C) $420.87
D) $580.26

Question

Quizplus · Accepted Answer

The value of the computer depreciates by 30% each year, meaning it retains 70% of its value annually. The number of years from 1996 to 2003 is 7 years. The value in 2003 is calculated as $2500 * (0.7)^7 = $205.89.

A Computer Was Purchased in 1996 for $2500