about the math problem?

1)suppose a computer valued at $6500 depreciates at a rate of 14.3% per year. After how many years is the value of the computer less than $2000?

2) A stock priced at $35 increases at a rate of 7.5% per year. what is the value of the stock in five years?

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A few days ago

Truly W

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1)suppose a computer valued at $6500 depreciates at a rate of 14.3% per year. After how many years is the value of the computer less than $2000?

http://en.wikipedia.org/wiki/Logarithm

2000 > 6500 * (100% – 14.3%)^n years

2000 / 6500 > (85.7%)^n

0.31 > 0.857^n

n > log(0.31) / log (0.857)

n > 7.6

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The value drops to less than $2000 after 7.6 (8?) years.

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2) A stock priced at $35 increases at a rate of 7.5% per year. what is the value of the stock in five years?

http://en.wikipedia.org/wiki/Future_value

FutureValue = CurrentValue * (1 + rate)^time

fv = 35 * (1 + 0.075) ^ 5

fv = 35 * 1.43562

fv = $50.25 (approx)

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