A piece of office equipment purchased for dollar-sign 67,500 depreciates in value each year. Suppose that each year the value of the equipment is StartFraction 1 Over 15 EndFraction less than its value the preceding year.
Calculate the value of the equipment after 2 years.
The value of the equipment after 2 years is dollar-sign
Each year, the value is multiplied by 1-1/15 = 14/15. Then after 2 years, the initial value has been multiplied by (14/15)^2 = 196/225. The value after 2 years is ...
