Question 1174219
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The value after 3 years is the initial value, multiplied by the depreciation factor 3 times.<br>
{{{85000 = 125000(x^3)}}}<br>
{{{x^3 = 85000/125000 = 17/25 = 0.68}}}
{{{x = (0.68)^(1/3)}}}<br>
To several decimal places, that is 0.879366.<br>
To check that, confirm that<br>
{{{125000(.879366^3) = 85000}}}<br>
Note that that number is the depreciation factor; the depreciation rate that the problem asks for is 1-0.879366 = 0.120634, or about 12%.<br>