SOLUTION: Daniel's Print Shop purchased a new printer for $35,000. Each year it depreciates (loses value) at a rate of 5%. What will its approximate value be at the end of the fourth year

Question 136646: Daniel's Print Shop purchased a new printer for $35,000. Each year it depreciates (loses value) at a rate of 5%. What will its approximate value be at the end of the fourth year?
Answer by smartcookie(2) (Show Source): You can put this solution on YOUR website!
The equation need to solve this problem is y=a(b)^x
a= the starting value
b= the rate of change
x= the time
to get the rate of change do the following:
add 1 to the percentage of change (only if value is growing)
subtract the percentage from one (only if value is decaying)
Since the printer is depreciating it is a decay.
The rate of change for this problem is showed below.
1-0.05
0.95 is the rate of change.
Below is the equation for the problem.
y=35000(0.95)^4 Work the problem.
Y=35000(0.814506250
Y=28507.71875 Since we are working with money we round to two decimal places.
The printer's value after four years is $28,507.72.

RELATED QUESTIONS
Mr. Jabot bought a new car for $24.000. Each year it depreciates (loses value) at a rate... (answered by checkley77)

Alex purchased a new car for $28,000. The car's value depreciates 7.25% each year. What... (answered by josgarithmetic)

A new car valued at $20,000 loses 10% of its value upon first leaving the acr yard and... (answered by solver91311)

A musical instrument depreciates by 20% of its value each year. What is the value, after (answered by Alan3354)

Sam has purchased a $30,000 car for his business. The car depreciates 30% every year.... (answered by ikleyn)

Ms. Smith purchased a car in 2017 for $30,000. If the value of her car depreciates at a... (answered by Boreal)

Kiana purchased a car for $14000 and realized that the value of the car depreciates at a... (answered by richwmiller)

A new car is purchased for 17000 dollars. The value of the car depreciates at 13.5% per... (answered by MathLover1)

You buy a used truck for $10,000. It depreciates at the rate of 18% each year for 5... (answered by techno)