Homework Help: Math

Posted by Kayla on Thursday, November 22, 2012 at 7:21pm.

The depreciation rate, r, for a $50,000 news car is given by the function r = 1 - (V/50,000)^(1/5), where V is the value of the car when it is five years old.

a) What is the depreciation rate for a $50,000 BMW that is worth $28,000 after 5 years? (I already found the answer to this: 10.95%)

b) Write V as a function of r (Help me answer this part!)

Thank you!

Math - Damon, Thursday, November 22, 2012 at 7:46pm
(V/50,000)^(1/5) = 1-r

V/50,000 = (1-r)^5

V = 50,000 (1-r)^5
Math - Steph, Thursday, November 22, 2012 at 7:56pm
What did you do with the exponent?
Math - Anonymous, Thursday, November 22, 2012 at 7:59pm
how do you do part a?
Math - Damon, Thursday, November 22, 2012 at 8:15pm
Steph, I raised both sides of the equation to the fifth power.
Math - Damon, Thursday, November 22, 2012 at 8:18pm
Anonymous

r = 1 - (28/50)^.2
= 1 - .56^.2
= 1 - .89
= .1095 or 10.95%
Math - Anonymous, Thursday, November 22, 2012 at 8:22pm
Thank you!!

Answer this Question

Related Questions

Tax consequence - Corporation is a calendar-year taxpayer. All of the stock is ...
Economics - The marginal tax rate is defined as the extra taxes paid on ...
math - jessica borrow$9000 from the bank to purchase a used car.the bank has ...
Healthcare Finance - You are considering starting a walk-in clinic. Your ...
healthcare finance - Suppose that a clinic has third-party payer revenues of $10...
Fed Tax 2- AMT - Corp reports - Taxable income 300,000 Interest on private ...
Finance (after-tax cost) - Assuming a tax rate of 50%, the after-tax cost of a $...
finance - As of December 31, 2008, Johnstown Company has $50,000 in accounts ...
accounting - Assets Cash (Net Effect) $35,000 20,000 +15,000 A/R 33,000 14,000 +...
finance - Assuming a tax rate of 35%, depreciation expenses of $1,000,000 will ...

For Further Reading

First Name:
School Subject:
Answer: