Answer:
Value of the monitor be after 3 years is $506.25 .
Step-by-step explanation:
As the exponential decrease function is written in the form .
[tex]y = a (1 - r)^{t}[/tex]
Where a is the intial value , r is the rate of interest in the decimal form and t is the time .
As given
Ray Industries bought a touch screen monitor for $1200. It is expected to depreciate at a rate of 25% per year.
a = $1200
25% is written in the decimal form .
[tex]= \frac{25}{100}[/tex]
= 0.25
r = 0.25
t = 3 years
Put all the values in the above
[tex]y = 1200(1 - 0.25)^{3}[/tex]
[tex]y = 1200(0.75)^{3}[/tex]
[tex]y = 1200\times 0.421875[/tex]
y = $506.25
Therefore the value of the monitor be after 3 years is $506.25 .
