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. For a sequence with a1 = 80,000, after n − 1 years you multiply by 0.94^(n−1).