SOLUTION: A bicycle is five years old. If it's value has been diminishing by 5% of its previous year's value and its book value is presently $500, what was its original value?

Question 996747: A bicycle is five years old. If it's value has been diminishing by 5% of its previous year's value and its book value is presently $500, what was its original value?
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
A bicycle is five years old. If it's [sic] value has been diminishing by 5% of its previous year's value and its book value is presently $500, what was its original value?
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500 = OV*0.95^5
OV = 500/0.95^5
OV =~ $646.18
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