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The value of a new computer decreases 20% each year. Ryan originally purchased his computer for \(\$1500\) .
What is the value of Ryan’s computer at the end of the second year he owns it?

Explanation

Multiply \(\$1500\) by 20%. Subtract your answer from \(\$1500\). Multiply this answer by 20%, and subtract your answer again:
\(\$1500 × 0.20 = \$300\)
\(\$1500 – \$300 = \$1200\)
\(\$1200 × 0.20 = \$240\)
\(\$1200 – \$240 = \$960\)

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