Question

Bailey bought a lawnmower for $600. The value of the lawnmower depreciates 2% every year. What is the value of the lawnmower after 5 years? Round your answer to the nearest dollar.

-Exponential

Answer 1

$542

Explanation:

we know that

The equation of a exponential decay function is given by

`y=a(1-r)^x`

where

y is the value of the lawnmower

x is the time in years

a is the initial value

r is the rate of change

we have

`a=\$600\\r=2\%=2/100=0.02`

substitute

`y=600(1-0.02)^x`

`y=600(0.98)^x`

For x=5 years

`y=600(0.98)^5=\$542`