SOLUTION: The value of a treadmill bought new for $1000 decreases 5% each year. Use a graph to predict the value of the treadmill in 5 years. A). $902.50 B). $857.38 C). $814.50 D).

Algebra ->  Finance -> SOLUTION: The value of a treadmill bought new for $1000 decreases 5% each year. Use a graph to predict the value of the treadmill in 5 years. A). $902.50 B). $857.38 C). $814.50 D).      Log On


   

Question 1016216: The value of a treadmill bought new for $1000 decreases 5% each year. Use a graph to predict the value of the treadmill in 5 years.
A). $902.50
B). $857.38
C). $814.50
D). $773.78
thank you.

Answer by fractalier(6550) About Me  (Show Source):
You can put this solution on YOUR website!
We can find this by
A(t) = Ao(1-r)^t = 1000(1-.05)^5 = $773.78
Choice D.