Answer: the resale value would be $791 after 4 years
Step-by-step explanation:
We would apply the formula for exponential decay which is expressed as
y = b(1 - r)^x
Where
y represents the value of the laptop computer after x years.
x represents the number of years.
b represents the initial value of the laptop computer.
r represents rate of decay.
From the information given,
P = $2500
x = 4
r = 25% = 25/100 = 0.25
Therefore,
y = 2500(1 - 0.25)^4
y = 2500(0.75)^4
y = $791
