Answer:
The resale value after three years = $ 632.8125
Explanation:
Given the laptop purchase for $1500
Therefore, the cost price = $1500
According to the question, the resale value decreases by 25%,
Then after three years, the resale value is
Resale Value = [tex]\text { cost Price }\left(1-\frac{r}{100}\right)^{\text {time }}[/tex]
Substituting the values,
Resale Value = [tex]1500\left(1-\frac{25}{100}\right)^{3}[/tex]
Resale Value = [tex]1500\times (\frac{3}{4})^3[/tex]
Resale Value = [tex]1500\times \frac{3}{4}\times \frac{3}{4}\times \frac{3}{4}[/tex]
Resale Value = $632.8125
Therefore, the resale value after three years = $ 632.8125
