Question

A print shop purchases a new printer for $25,000. The equipment depreciates at a rate of 5% each year. The relationship between the value of the printer, y, and the year number, x, can be represented by the equation, y = 25 , 000 ⋅ 0.95 x . Complete the table below with the value of the printer, to the nearest cent, in years 1, 2, and 3. Include proper decimals and commas in your answer and show your answer to the nearest cent.

Answer 1

The value of the printer on the first year was $ 23,750.00. On the second year it was $ 22,562.5. On the third year it was $ 21,434.38.

Explanation:

Since the printer depreciates at a rate of 5% per year, I believe the stated equation is miss typed. Therefore I'll answer this with the correct equation that would represent that setting:

`y(x) = 25,000*0.95^x`

In the first year the value of the printer is:

`y(1) = 25,000*0.95^1 = 23,750`

On the second year the value of the printer is:

`y(2) = 25,000*0.95^2 = 22,562.5\\`

On the third year the value of the printer is:

`y(3) = 25,000*0.95^3 = 21,434.38\\`

The value of the printer on the first year was $ 23,750.00. On the second year it was $ 22,562.5. On the third year it was $ 21,434.38.