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The value of an industrial machine has a decay factor of 0.75 per year. After six years, the machine is worth $7,500. What was the original value of the machine?

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  1. 24 May, 20:38
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    Given that the value of an industrial machine has a decay factor of 0.75 per year, and after six years, it became $7,500 only, this would mean that the original value of the machine would be solved like this: 7500 = x (1-.75) ^6

    7500 = x (0.25) ^6

    7500 = x (0.00024414062)

    7500 = 0.00024414062x

    x = 30, 720, 000

    Hope this answers your question.
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