In business, equipment is often depreciated using the double declining-balance method. In this method, a piece of equipment with a life expectancy of N years, costing $C, will depreciate to a value of $V in n years, where n is given by the formula
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If a computer that cost $39,000 has a life expectancy of 4 years and has depreciated to a value of $15,000, how old is it? Round to the nearest tenth.
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A. 2.5 years old
B. 0.7 years old
C. 0.6 years old
D. 1.4 years old
E. 1.5 years old
Answer: D
Mathematics
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