SOLUTION: The value of a piece of equipment has a decay factor of 0.080 per year. After 5 years, the equipment is worth $98,304. What was the original value of the equipment?

Question 585112: The value of a piece of equipment has a decay factor of 0.080 per year. After 5 years, the equipment is worth $98,304. What was the original value of the equipment?
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
The value of a piece of equipment has a decay factor of 0.080 per year. After 5 years, the equipment is worth $98,304. What was the original value of the equipment?
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Its value each year is 0.92 of the previous year.
After 5 years,
Value = OV*0.92^5 = 98304
OV = 98304/(0.92^5)
OV =~ $149153.02

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