Math Finance question!!?

Question

A man bought a laptop for 3000%. but he needed the money later and sold it after 2 years. If the deprecation rate is 30% a year and the life of the computer is six years, how much money can he when he sells the laptop?

i tried it with a formula that read: V=3000(1-2/6)^2

didnt work though

thanks!

Answer 1

1. I will assume he paid $3000. 3000% is NOT an amount.
2. I will assume you are asking how much he can sell the computer for. There is at least one word missing from the question.
3. I will assume a residual value of $0. You did not state what the computer would be worth at the end of the 6 year life.

Year 1:
Beginning value = $3000
Depreciation = $3000 x 30% = $900
Ending value = $3000 - $900 = $2100

Year 2:
Beginning value: = $2100
Depreciation = $2100 x 30% = $630
End value = $2100 - $630 = $1470

You state your formula does not work, therefore I believe you know what the answer should be. Did my 4th grade math work?

Answer 2

V = $3000 x (0.7)^2 = $1470
Why did you use (1-2/6)^2? 2/6 = 33.33% depreciation per year. You should have used (1-0.3)^2.