You want to convince your parents to buy you Apple’s new, second generation, i‐Pad — specifically with 32 GB of space. However, your parents argue that Apple releases new generations so frequently, it would be a massive waste of money to buy the latest model. In fact, most gadgets depreciate exponentially.
BUT WAIT! Your parents have decided to make a deal with you. If you can mathematically prove that
the i‐Pad 2 will be worth at least $200 in five years, they will buy you one.
So here’s the information you collected on the first generation i‐Pad. In 2010, the cost was $600. In 2011, the cost is $500. Assuming the i‐Pad 2 will follow the same exponential model, prove that the i‐Pad 2 will be worth at least $200 in five years.
0 comments