Answer: $250
Step-by-step explanation:
The computer reduces by half of its value every year. It is originally valued at $4,000 so the value in 4 years can be calculated by the formula:
= 4,000 * 0.5 ^ number of years
= 4,000 * 0.5⁴
= $250
Another method is to reduce by half every year:
First year = 4,000 / 2 = $2,000
Second year = 2,000 / 2 = $1,000
Third year = 1,000 / 2 = $500
Fourth year = 500 / 2 = $250
