Well if it is depreciation in business it is the same every year so
70,000-55200= 14800
so divide by 4
14800/4= $3700
Problem: The value of a piece of machinery depreciates exponentially. When purchased new, it was worth $70,000. After 4 years, it was worth $55,200. Find the rate of change of the value of the equipment after 4 years.
I started with:
4r = ln (55,200/70,000)
so..
4r = -0.2375322...
divide by 4 on both sides..
r = -.05938...
multiply by initial value (70000)
I got:
$4,156.60
which was not an answer choice, lol
I'm obviously setting this up wrong, any help is appreciated
Hello, DirtMcGirt!
The value of a piece of machinery depreciates exponentially.
When purchased new, it was worth $70,000. After 4 years, it was worth $55,200.
Find the rate of change of the value of the equipment after 4 years.
We have: .
When
Then: .
Hence: .
. . The function is: .
The rate of change is: .
When
At the end of 4 years, it is depreciating at the rate of $3261.79 per year.