Alocal parts shop buys a machine that costs $500,000. its value depreciates exponentially each year by 10%. what is the machines value after 5 years? round to nearest integer

Hello!

$295.295

Explanation:

Of the statement, we have that the price of the machine decreased 10% every year exponentially, so in the first year it real value drops to 90% of the costs. For 5 years, It can be expressed and simplified by the following equation:

We can't use that the percent drop as a percent itself, so we are going to divide 90% by 100%, and it will give us an entire number.



By substituting we have:



Value: $295.245

Have a nice day!