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)

O an=80,000(0.94)7

O an= 80,000(0.94)7-1

O an=80,000(0.06)n
O an=80,000(0.06)n-1

Answer 1

a_n = 80,000(0.94)^{\,n-1}

Reason: each year the equipment retains 94% of its value (1 − 0.06 = 0.94), so it's a geometric sequence with a1 = 80,000 and ratio 0.94, giving a_n = a1·0.94^{n-1}.