The price of a computer system can be modelled by the formula P = 100 + 850

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The price of a computer system can be modelled by the formula P = 100 + 850 e−t/2 where P is the price of the system in £s and t is the age of the computer in years after being purchased.

a. Calculate the new price of the system.

b. Calculate its price after 3 years.

c. When will it be worth less than £200?

d. Find its price as t → ∞.

e. Sketch the graph showing P against t.

f. Comment on the appropriateness of this model.

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