Answer:
[tex]V(n) =225000*0.7^n[/tex]
Step-by-step explanation:
In this problem we are expected to model the depreciated value of the machine after some years of purchase (n years)
initial value of the machine is $225,000
after a year it reduces by 30%
Therefore the new value is now 70% of the initial value
[tex]= 225000*0.7= 157,500[/tex]
= $157,500
After another year it reduces by 30%
Hence the new value is
[tex]=225000*0.7^2\\\=225000*0.49\\\\\=110250[/tex]
= $110250
that after n years the value will be
[tex]V(n) =225000*0.7^n[/tex]
