SOLUTION: On federal income tax returns, self-employed people can depreciate the value of business equipment. Suppose a computer valued at $2765 depreciates at a rate of 30% per year. Find

Question 808731: On federal income tax returns, self-employed people can depreciate the value of business equipment. Suppose a computer valued at $2765 depreciates at a rate of 30% per year. Find the multiplier for the rate of exponential decay.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
On federal income tax returns, self-employed people can depreciate the value of business equipment. Suppose a computer valued at $2765 depreciates at a rate of 30% per year. Find the multiplier for the rate of exponential decay.
--------
Each year it is worth 70% of last year's value.
------------
Value(x) = 2765(0.7)^x
-------
You might want the following::
Solve e^k = 0.7
k = ln(0.7)
k = -0.3567
-----
Value(x) = 2765*e^(-0.3567x)
=======
Cheers,
Stan H.
-----------
RELATED QUESTIONS
Hello dear tutor, I need help with a certain math problem today that we just learned... (answered by stanbon)

2016 FICA Tax Rates1 Employee's Rates Matching Rates Paid by the Employer Self-Employed (answered by Theo)

Suppose that 85% of all federal tax returns filed last year are free of arithmetic... (answered by robertb)

(2) Owen and Sarah's pre-tax income is $100,000. Suppose that state income tax is 10% of... (answered by Theo)

Here is the distribution of the adjusted gross income (in thousands of dollars) reported... (answered by robertb)

Given the following national income data National income = 22100 $ Wages and salaries = (answered by ikleyn)

Suppose a married couple won the Mega Million and took it as a lump sum of $345,000,000.... (answered by ikleyn)

The ratio of a mans federal income tax to state income tax is 11 to 5. If the man pays a (answered by stanbon)