A farmer buys a tractor for $10,000. If the tractor depreciates 10% per year, write an exponential decay function to fin the value of the tractor in 7 years.

F = P (1 - x) ^n

F = 10,000 (1 - 0.1) ^7

F = 10,000 (0.9) ^7

F = $4,783

The value of the tractor in 7 years is $4,783

Step-by-step explanation:

Applying the exponential depreciation equation;

F = P (1 - x) ^n

Where;

F = final value after n years

P = initial value

x = depreciation rate (fraction)

n = time

Given;

P = $10,000

x = 10% = 0.10

n = 7 years

Substituting the given values;

F = 10,000 (1 - 0.1) ^7

F = 10,000 (0.9) ^7

F = 4782.969

F = $4,783

The value of the tractor in 7 years is $4,783