Question

a piece of machinery valued at 370,000 depreciates at a fixed rate of 6% per year. how much will the piece of machinery be worth in 8 years?

Answer 1

To find out how much the piece of machinery will be worth in 8 years, use the formula for exponential decay.

Step-by-step explanation:

To find out how much the piece of machinery will be worth in 8 years, we can use the formula for exponential decay:

final value = initial value × (1 - rate of depreciation)^number of years

In this case, the initial value is $370,000 and the rate of depreciation is 6% per year. Plugging in these values, we get:

final value = $370,000 × (1 - 0.06)^8

Calculating this, we find that the piece of machinery will be worth approximately $213,922.79 in 8 years.