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 subscript n baseline equals 80,000 left parenthesis 0.06 right parenthesis superscript n minus 1 baseline

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

a_n=80,000(0.94)^n−1

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

Answer 1

Answer: a_n = 80,000(0.94)^{n−1}

Reason: each year the equipment keeps 94% of the previous year's value (1 − 0.06 = 0.94). If a_1 = 80,000 (value when opened), then a_n = 80,000·(0.94)^{n−1}. (If you index from year 0, you'd use 80,000·(0.94)^n.)