Answer:
[tex]V(n) = 575000(0.7)^{n}[/tex]
Step-by-step explanation:
The value of the machine after n years is given by an exponential function in the following format:
[tex]V(n) = V(0)(1-r)^{n}[/tex]
In which V(0) is the initial value and r is the yearly rate of depreciation, as a decimal.
A company buys a machine for $575,000 that depreciates at a rate of 30% per year.
This means, respectively, that: [tex]V(0) = 575000, r = 0.3[/tex]. So
[tex]V(n) = V(0)(1-r)^{n}[/tex]
[tex]V(n) = 575000(1-0.3)^{n}[/tex]
[tex]V(n) = 575000(0.7)^{n}[/tex]
