Question

A local bakery opened with new equipment worth $80,000. Ten years later, the owners’ accountants told them that their equipment had depreciated at a rate of 6 percent per year. Which equation would you use to create a sequence modeling this situation?(1 point)
Responses

an=80,000(0.06)n−1
𝑎
𝑛
=
80
,
000
(
0.06
)
𝑛
−
1
a subscript n baseline equals 80,000 left parenthesis 0.06 right parenthesis superscript n minus 1 baseline

an=80,000(0.06)n
𝑎
𝑛
=
80
,
000
(
0.06
)
𝑛
a subscript n baseline equals 80,000 left parenthesis 0.06 right parenthesis superscript n baseline

Answer 1

a_n = 80,000(0.94)^(n−1)

Reason: Depreciation of 6% per year leaves 94% each year, so the sequence is geometric with common ratio 0.94 and first term 80,000. (If you index from year 0, use a_n = 80,000(0.94)^n.)