Question

What is the total depreciation (at 10% rate) on a blower purchased 3 years ago for $499?

Answer 1

$\bf \qquad \textit{Amount for Exponential Decay} \\\\ A=P(1 - r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{initial amount}\dotfill &499\\ r=rate\to 10\%\to \frac{10}{100}\dotfill &0.10\\ t=\textit{elapsed time}\dotfill &3\\ \end{cases} \\\\\\ A=499(1-0.10)^3\implies A=499(0.9)^3\implies A=363.771 \\\\[-0.35em] \rule{34em}{0.25pt}\\\\ ~\hfill \stackrel{\textit{total depreciation 499 - 363.771}}{135.229}~\hfill$