A piece of equipment loses 10% of its value every year. If it is worth $6,000 today, what will it be worth after 4 years?
1. Use the formula for exponential decay:
The formula to find the value of an asset after years with a depreciation rate (expressed as a decimal) and an initial value is .
In this case:
The initial value of the equipment is $.
The depreciation rate is , which in decimal form is .
The number of years is .
2. Substitute the values into the formula:
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