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The value of an industrial machine has a decay factor of 0.75 per year. After six years, the machine is worth $7,500. What was the original value of the machine?

User DomDunk
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1 Answer

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Given that the value of an industrial machine has a decay factor of 0.75 per year, and after six years, it became $7,500 only, this would mean that the original value of the machine would be solved like this: 7500 = x(1-.75)^6
7500 = x(0.25)^6
7500 = x(0.00024414062)
7500 =
0.00024414062x
x =
30, 720, 000
Hope this answers your question.
User Cfpete
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