SOLUTION: The local parts shop buys a machine that costs $500,000. Its value depreciates exponentially each year by 10%. What is the machine’s value after 5 years? Round your answer to the n
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Question 1075780: The local parts shop buys a machine that costs $500,000. Its value depreciates exponentially each year by 10%. What is the machine’s value after 5 years? Round your answer to the nearest integer. Answer by jorel1380(3719) (Show Source):
You can put this solution on YOUR website! Let V be the machines' value. Every year, the machine loses 10% of its value; making it worth 90% of what it was the year before. So:
V=500000*(0.9)^5
V=500000*0.59049=$295245 as the value of the machine after 5 years. ☺☺☺☺
