# Thread: Exponential Graph help? (Word Problem) 1

1. ## Exponential Graph help? (Word Problem) 1

A corporate jet originally costs \$16,550,000. If its value depreciates by 5 percent per year, what will its value be after 10 years?

I don't have an answer, though I thought I did..

2. The value is 17,550,000

3. Originally Posted by puzzledwithpolynomials
The value is 17,550,000
$T(x) = T(0)(1+x)^n$

T(x) is the value at any given value of n
T(0) is the value at x=0 (ie original value)
x is the factor of depreciation (x>0 for inflation)
n = number, in this case years.

$T(t) = 17550000\cdot(1-0.05)^10 = 10,507,833.28$