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A piece of machinery depreciates at a fixed rate of 12% per year for 7 years. If the machinery is valued at $100,000 after 7 years, how much would the machinery have initially cost rounded to the nearest dollar?
a.
$113,636
d.
$45,235
b.
$40,868
e.
$244,692.86
c.
$244,693



Answer :

abidemiokin

The price the machinery have initially cost rounded to the nearest dollar is $244,693

Exponential equation

The formula for calculating depreciation is expressed according to the formula:

P(t) = P0e^-rt

Given the following parameters

P(t) = $100,000

rate = 12% = 0.12

time =7 years

Substitute

100,000 = P0e^-(0.12)(7)

100000 = P0e^0.84
P0 = 100000/e^0.84
P0 = $244,693

Hence the price the machinery have initially cost rounded to the nearest dollar is $244,693

Learn more on exponential equation here: https://brainly.com/question/2456547

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