Question

In January, 1980, a manufacturer purchased $1,500,000 worth of machinery. Each following year the value of the machinery depriciated in value by 10%. What is the machinery worth now?

Answer 1

The 1980 price is $1,500,000.

By now, I assume you mean 2017.

So, 2017 - 1980 = 37 years.

For 1981 = 1,500,000 • 0.10

For 1981 = $1,500,000 - $150,000

For 1981 = $1,350,000

Continue this process until reaching the year 2017. Use your calculator.

So, for 1982, what would you calculate?