Question

A construction company purchased some equipment costing $300,000. The value of the equipment depreciates

Answer 1

Answer:

Cost of equipment after n years = 300000 x 0.86ⁿ

Step-by-step explanation:

A construction company purchased some equipment costing $300,000.

Price of equipment = 300000 $

The value of the equipment depreciates  (decreases) at a rate of 14% per year.

Let c(n) be the cost of equipment after n years.

$\texttt{Cost of equipment after 1 year =}300000-\frac{14}{100}\times 300000=0.86^1\times 300000\ \\\\\texttt{Cost of equipment after 2 years =}0.86^2\times 300000\ \\\\\texttt{Cost of equipment after 3 years =}0.86^3\times 300000\ \\\\\texttt{Cost of equipment after n years =}0.86^n\times 300000$

Cost of equipment after n years = 300000 x 0.86ⁿ