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Daniel's Print Shop purchased a new printer for $35,000. Each year it depreciates (loses value) at a rate of 5%. What is the initial value?

User Prathap
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1 Answer

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Answer:

The equation need to solve this problem is y=a(b)^x

a= the starting value

b= the rate of change

x= the time

to get the rate of change do the following:

add 1 to the percentage of change (only if value is growing)

subtract the percentage from one (only if value is decaying)

Since the printer is depreciating it is a decay.

The rate of change for this problem is showed below.

1-0.05

0.95 is the rate of change.

Below is the equation for the problem.

y=35000(0.95)^4 Work the problem.

Y=35000(0.814506250

Y=28507.71875 Since we are working with money we round to two decimal places.

The printer's value after four years is $28,507.72.

User Werolik
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