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)

an=80,000(0.94)n−1


an=80,000(0.94)n


an=80,000(0.06)n−1


an=80,000(0.06)n

Answer 1

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

Reason: Each year the value is multiplied by 1 − 0.06 = 0.94. If a1 = 80,000, then a_n = 80,000(0.94)^{n-1}.