SOLUTION: A piece of machinery valued at $250,000 depreciates at a fixed rate of 12% per year. After how many years will the value have depreciated to $100,000?

Question 357168: A piece of machinery valued at $250,000 depreciates at a fixed rate of 12% per year. After how many years will the value have depreciated to $100,000?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A piece of machinery valued at $250,000 depreciates at a fixed rate of 12% per year. After how many years will the value have depreciated to $100,000?
------------------------------
Each year the item retains 88% of its last-year value.
---
Solve: 250,000(0.88)^x = 100,000
0.88^x = 0.4
---
x = [log0.4]/[log0.88]
---
x = 7.168 years
=======================
Cheers,
Stan H.
RELATED QUESTIONS
a piece of machinery depreciates at a fixed rate of 12% per year for 7 years. If the... (answered by ewatrrr)

a piece of machinery valued at 250 000 depreciate at an average rate of 10% yearly what... (answered by josmiceli)

A piece of manufacturing equipment valued at $125,000 depreciates at a steady rate of 10% (answered by rfer)

question 1: you deposit $1200 at 6% compound interest annually. Find the balance in your... (answered by stanbon)

4. The value of a lathe originally valued at �3000 depreciates 15% per annum. Calculate... (answered by Edwin McCravy)

A car that was originally valued at $16,000 depreciates at 15% per year. This means that (answered by Theo)

If a new car costs $18,000.00 and depreciates at a rate of 12% per year, what will be the (answered by stanbon)

The buildings in a factory depreciate at the rate of 2.5% per year. Hence the value A of... (answered by Theo)

If a new car is valued at $24,800 and 8 years later it is valued at $8000, then what is... (answered by Alan3354)