SOLUTION: On federal income tax returns, self-employed people can depreciate the value of business equipment. Suppose a computer valued at $2765 depreciates at a rate of 30% per year. Find

Algebra ->  Trigonometry-basics -> SOLUTION: On federal income tax returns, self-employed people can depreciate the value of business equipment. Suppose a computer valued at $2765 depreciates at a rate of 30% per year. Find      Log On


   

Question 808731: On federal income tax returns, self-employed people can depreciate the value of business equipment. Suppose a computer valued at $2765 depreciates at a rate of 30% per year. Find the multiplier for the rate of exponential decay.
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
On federal income tax returns, self-employed people can depreciate the value of business equipment. Suppose a computer valued at $2765 depreciates at a rate of 30% per year. Find the multiplier for the rate of exponential decay.
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Each year it is worth 70% of last year's value.
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Value(x) = 2765(0.7)^x
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You might want the following::
Solve e^k = 0.7
k = ln(0.7)
k = -0.3567
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Value(x) = 2765*e^(-0.3567x)
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Cheers,
Stan H.
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