Answer:
The formula is;
V = 275,000(0.9)^n
The value of the machine after 5 years is $162,384.75
Step-by-step explanation:
Here, we want to find the formula for the value of the machine after n years
Mathematically, we can use an exponential model for this
V = I ( 1 - r)^n
Where v is the value after n years
I is the value at which the machine was bought
r is the depreciation percentage ; 10% = 10/100 = 0.1
n is the number of years
Thus;
V = 275,000(1 - 0.1)^n
V = 275,000(0.9)^n
The value of the machine after 5 years will be;
V = 275,000(0.9)^5
V = 162,384.75
