A company purchases 24500 of new computer equipment. For tax purposes the company estimates that the equipment decreases in value by the same amount each year. After 3 years the estimate value is 9800

Write an explicit function that gives the estimate value I'm the computer equipment n years after purchase

Question

15 May, 09:30

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Justice Oneill · 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