On federal income tax returns, self-employed people can depreciate the value of business equipment. Suppose a computer valued at
$2765 depreciates at a rate of 30% per year. Estimate the number of years it will take for the computer's value to be less than $350. 5.8 yr
10.3 yr
2.5 yr
7.2 yr
If it depreciates 30% each year it must retain 70% of its value each year.
Equation: A(t) = A(0)*0.70^t Your Problem: 2765(0.70)^t < 350 0.70^t < 0.1265823... Taket the log of both sides to get: t*log(0.70) < log(0.1265823..) Solve for "t": t > -0.897627.. / -0.1549020 t > 5.7948 years
