Question

A university purchases exercise equipment worth $21,000 for the campus fitness center. The equipment has a useful life of about 6 years. It is estimated that the value of the fitness equipment depreciates by 12% each yearWhat is the 1-year decay factor? What is the 1-year percent change? Let q be the function that defines the value of the equipment after w years. What is the function q?q(w)= Determine the value of the equipment 5 years after it was purchased. Value after 5years in dollars =

Answer 1

Decay factor is 0.88

Explanation:

Given the following

The initial value = $210,000

rate = 12%

The decay factor is expressed as

b = 1 - r

r = 12%

r = 0.12

Decay factor = 1 - r

Decay factor = 1 - 0.12

Decay factor = 0.88