Need help with this algebra question

Question

A company purchased a new piece of machinery for 60,000 and wants to resell it after 11 years. If the machine loses 9% of its value every year, Write an explicit equation to find out what it will be worth when they sell it. Round to nearest dollar

Answer 1

This is an example of exponential decay that will use the equation A(t) = P(1-r)^t where A(t) represents the amount at time t, P represents the principle, r is the depreciation rate, and t is the time in units stated in the question.

A(t) = P(1-r)^t

A(t) = 60,000(1-0.09)¹¹

Solving for A(t) will get you the answer.

Answer 2

If you lose 9% you have 91% remaining so f(x) = (60,000)(.91)^11 = $21,262