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

a subscript n baseline equals 80,000 left parenthesis 0.06 right parenthesis superscript n baseline

an=80,000(0.94)n

a subscript n baseline equals 80,000 left parenthesis 0.94 right parenthesis superscript n baseline

an=80,000(0.94)n−1

a subscript n baseline equals 80,000 left parenthesis 0.94 right parenthesis superscript n minus 1 baseline

an=80,000(0.06)n−1

Answer 1

Answer: an = 80,000(0.94)^n

Reason: Depreciation 6% per year multiplies value by 1 − 0.06 = 0.94 each year, so after n years the value is 80,000·0.94^n. (If you label the initial year as a1 instead of a0, use 80,000·0.94^(n−1).)