Question

A company purchases 24,500 worth of new computer equipment. For tax purposes the company estimates the equipment deceases in value by the same amount each year. After 3 years the estimated value is 9,800. Write an expicit function that gives the estimated value of the computer equipment n years after the purchase.

Answer 1

 9800=24500(1-r)^3 solve for r

r= (9800/24500)^(1/3))-1)*100 r=26.31% explicit function F(x)=p (1-r)^x