Question

Daniel's Print Shop purchased a new printer for $35,000. Each year it depreciates at a rate of 5%.Use an exponential function to find its approximate value after 8 years.

Answer 1

To solve, we will use the formula below;

V = V₀ ( 1- r)ⁿ

where

V₀ is the initial value

n is the number of years

r is the rate of time

From the question;

V₀= 35 000 r = 5/100 = 0.05 n =8

substitute the values into the formula and then evaluate

V = 35000 ( 1 - 0.05)⁸

= 35000(0.95)⁸

= $23219.72