Question

A piece of equipment costs $85,000 new but depreciates 15% each succeeding year.

Find its value after 10 years.

Answer 1

16,734.34 is the answer

Answer 2

Answer: $16,734.32

Explanation:

Make an exponential equation where y represents the price of the equipment and x represents the number of years

y = 85,000(1 - 0.15)^x

y = 85,000(0.85)^10

y = 16,734.32

Therefore, the price of the equipment after 10 years will be $16,734.32