SOLUTION: A piece of machinery valued at $250,000 depreciates at a fixed rate of 12% per year. After how many years will the value have depreciated to $100,000?

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Question 357168: A piece of machinery valued at $250,000 depreciates at a fixed rate of 12% per year. After how many years will the value have depreciated to $100,000?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
A piece of machinery valued at $250,000 depreciates at a fixed rate of 12% per year. After how many years will the value have depreciated to $100,000?
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Each year the item retains 88% of its last-year value.
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Solve: 250,000(0.88)^x = 100,000
0.88^x = 0.4
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x = [log0.4]/[log0.88]
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x = 7.168 years
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Cheers,
Stan H.