Question

The value of a treadmill bought new for $1000 decreases 5% each year. Use a graph to predict the value of the treadmill in 5 years.
A) ≈ $773.78
B) ≈ $857.38
C) ≈ $902.50
D) ≈ $814.50

Answer 1

The formula is
V (t)=V0 (1-r)^t
V (t)?
V0 1000
R 0.05
T 5 years

V (5)=1,000×(1−0.05)^(5)=773.78