SOLUTION: The salvage value S​ (in dollars) of a company limousine after t years is estimated to be given by the formula below. Use the formula to answer the questions. S(t) = 800,000

Algebra ->  Finance -> SOLUTION: The salvage value S​ (in dollars) of a company limousine after t years is estimated to be given by the formula below. Use the formula to answer the questions. S(t) = 800,000      Log On


   

Question 1065189: The salvage value S​ (in dollars) of a company limousine after t years is estimated to be given by the formula below. Use the formula to answer the questions.
S(t) = 800,000(0.9)^t
What is the rate of depreciation (in dollars per year) after 1, 5, and 10 years?

Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Let +t+=+0+ to find value starting off
+S%280%29+=+800000%2A.9%5E0+
+S%280%29+=+800000+
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+S%281%29+=+800000%2A.9%5E1+
+S%281%29+=+720000+
and
+800000+-+720000+=+80000+
+80000+%2F+800000+=+.1+
10% depreciation
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+S%285%29+=+800000%2A.9%5E5+
+S%285%29+=+800000%2A.5905+
Solve next two like the 1st one