Question

A company purchases 24500 of new computer equipment. For tax purposes the company estimates that the equipment decreases in value by the same amount each year. After 3 years the estimate value is 9800

Write an explicit function that gives the estimate value I'm the computer equipment n years after purchase

Answer 1

9800=24500(1-r)^3
Solve for r
r=(9800/24500)^(1/3))-1)*100
r=26.31%

Explicit function
F(x)=p(1-r)^x