suppose that the scrap value of a pice of heavy equipment, purchased new for $395000, decreased by 12% annually

Question

determine the equipment value function V(T). Let T equal the number of years since the date of purchase

Answer 1

V(t) = 395000(0.88)^t

Answer 2

V(T) = 395K(1-.12)^T

= $395,000(.88)^T where T = years since date of purchase