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Find the value of a machine at the end of 4 years if the original cost was $1038 and r=0.28. Round to two decimal places.

Find The Value Of A Machine At The End Of 4 Years If The Original Cost Was 1038 And R028 Round To Two Decimal Places class=

Sagot :

We have a value function of a machine at the end of the year t that is:

[tex]V=C(1-r)^t[/tex]

We know that C = 1038 and r = 0.28.

We have to calcula the value of the machine after 4 years (t = 4).

Then, we replace the parameters with their values and calculate V as:

[tex]\begin{gathered} V(t)=C(1-r)^t \\ V(4)=1038\cdot(1-0.28)^4 \\ V(4)=1038\cdot0.72^4 \\ V(4)=1038\cdot0.26873856 \\ V(4)\approx278.95 \end{gathered}[/tex]

Answer: the value is $278.95.

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