Write a linear equation giving the value of the equipment during the 10 years it will be in use

Question

A school district purchases a high-volume
printer, copier, and scanner for $25,000. After 10 years,
the equipment will have to be replaced. Its value at that
time is expected to be $2000. Write a linear equation
giving the value of the equipment during the 10 years it
will be in use

Answer 1

It uses the reduced value depreciation formula

 

p(t) = p(0)[(1-r)] raised to power t

 

So,

 

2000 = 25000 [(1 - r)] raised to power 10

 

2 =25 [(1-r)] raised to power 10

 

r is rate of depreciation per year