Hello!
Answer:
$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.
[tex]\frac{90}{100}=0,9 \\ \\ Value=Costs.(0.9)^{years}[/tex]
By substituting we have:
[tex]Value=500000.(0.9)^{5}[/tex]
Value: $295.245
Have a nice day!
