Question

The local parts shop buys a machine that costs $500,000. Its value depreciates exponentially each year by 10%. What is the machine’s value after 5 years? Round your answer to the nearest integer.

Answer 1

Answer: 295245

Explanation:

Just did the algebra nation this is the exact answer :)

Answer 2

If you would like to know what is the machine's value after 5 years, you can calculate this using the following steps:

1 year: $500,000 - 10% * $500,000 = 500,000 - 10/100 * 500,000 = $500,000 - $50,000 = $450,000

2 years: $450,000 - 10% * $450,000 = 450,000 - 10/100 * 450,000 = $450,000 - $45,000 = $405,000

3 years: $405,000 - 10% * $405,000 = 405,000 - 10/100 * 405,000 = $405,000 - $40,500 = $364,500

4 years: $364,500 - 10% * $364,500 = 364,500 - 10/100 * 364,500 = $364,500 - $36,450 = $328,050

5 years: $328,050 - 10% * $328,050 = 328,050 - 10/100 * 328,050 = $328,050 - $32,805 = $295,245

The correct result would be $295,000.