The equation is y=1200(1-0.027)ˣ, which can also be written as y=1200(0.973)ˣ.
The computer will be worth $1105.40 after 3 years.
Exponential equations are written in the form y=abˣ, where b=1+r (rate of increase or decrease as a decimal number) and a is the initial amount. The initial amount of the computer is 1200, and the rate of decrease is 2.7, so -0.027. Putting 3 in for the exponent (number of years) we get:
y=1200(0.973)³=1105.40.
