Question

he original price of a tractor was $45,000. The price of the tractor decreases at a steady rate of 8.3% per year. What is the value of the tractor in 5 years? $_______

Answer 1

• Answer:

$29178.25

• Explanation:

x = p(1 - r)ⁿ

p = original price

r = 8.3% = 0.083

n = 5 years

x = $45000(1 - 0.083)⁵

= $45000ₓ0.917⁵

= $45000ₓ0.64840548256

= $29178.25