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

Answer:

$542

Step-by-step 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

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