The half life of the value of the computer is = 2 years
The time it will take for the computer to be worth 10% of its purchase price= 3.5 years.
Calculation of the half-life of computer
V = value of computer= $2000
t = time after original purchase = 1 year
h = half-life of the value of the computer
The half-life value can be calculated using the given formula;
V(t) = 2000(1/2)^t/h
2000×1 = (2000×1/2)^1/h
2000= 1000^1/h
Make h the subject formula,
h= 2000/1000
h = 2 years
The time it will take for the computer to become 10% of its purchase price is,
10/100×2000
= 20000/100
=$200
If after 1 year the computer= $1516
This means that in a year the price of the computer reduces by approximately $500
Therefore it will take approximately 3.5 years to purchase the computer at 10% it's organic price.
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