Precalculus

Question

The yearly depreciation of a certain machine is 55% of its value at the beginning of the year. If the original cost of the machine is $20,000, what is its value after 4 years?

Answer 1

Value = $20,000·(1-0.55)^t = $20,000·(0.45)^t 

 

Where t = years.  Plug in t = 4 and compute the answer on your calculator.