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..
$\displaystyle T(x) = T(0)(1+x)^n$
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.
plug in your numbers,
T(0) = 17,550,000
x = -0.05
n = 10
$\displaystyle T(t) = 17550000\cdot(1-0.05)^10 = 10,507,833.28$