SOLUTION: I'm looking for a function to express this problem. If equipment worth a value of $100,000 depreciates at 4.5% of its beginning value each year, find a function f(t) that shows

Algebra ->  Functions -> SOLUTION: I'm looking for a function to express this problem. If equipment worth a value of $100,000 depreciates at 4.5% of its beginning value each year, find a function f(t) that shows      Log On


   

Question 1047534: I'm looking for a function to express this problem.
If equipment worth a value of $100,000 depreciates at 4.5% of its beginning value each year, find a function f(t) that shows the equipment value after t years have passed.
I have plotted coordinates for (0,100,000) and worked out one years worth of depreciation and plotted coordinates for (1, 95,500). I have drawn that on a graph but I'm stuck for what function it expresses.

Answer by josgarithmetic(39618) About Me  (Show Source):
You can put this solution on YOUR website!
Exponential Decay.

The equipment looses 4.5% of its value each year meaning it retains 100-4.5=95.5%2Apercent of its value each year.

One way to form the model is highlight%28f%28t%29=100000%2A%280.955%29%5Et%29, for the value after any time in years, t.

The interpretation might not be correct. If you really mean, "... of its beginning value each year.", then this would not be exponential decay.
In this case, 0.045%2A100000=4500%2Adollars,for how much loss in a year, and the decay or depreciation function would need to be highlight%28f%28t%29=-4500%2At%2B100000%29.