Answer:
t= 12.9 years
Step-by-step explanation:
Value after t years = initial value ( 1 - r )^t
Where,
Value after t years= $5000
Initial value = $22,400
r= depreciation rate = 11%
t= length of time (years)
Value after t years = initial value ( 1 - r )^t
5000 = 22,400 ( 1 - 0.11)^t
5000 = 22,400(0.89)^t
Divide both sides by 22,400
(0.89)^t = 5000 / 22,400
(0.89)^t = 0.2232
Take the log of both sides
t log 0.89 = log 0.2232
t= log 0.2232 / log 0.89
= -0.6513 / -0.0506
= 12.87
t= 12.9 years
