A whale costs $14700 and depreciates in value by 8% per year. When will the whale be worth $100

Mathematics

1 answer:

sammy [17]3 years ago

3 0

Answer:

x = 60

Step-by-step explanation:

The question is asking

$14,700 * (1 - 8%)^x = $100

$14,700 * (1 - 0.08)^x = $100

$14,700 * (0.92)^x = $100

(0.92)^x = $100/$14,700

log(0.92^x) = log($100/$14,700)

x * log(0.92) = log(0.0068027)

x = log(0.0068027)/log(0.92)

x = 59.85

Since this question is asking in terms of years, we always round up (in this case to 60), as it won't fully be worth $100 by the beginning of the 59th year.

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