Five years after purchase, a machine has a value of $300. The depreciation rate is
26% per year. Calculate the value of the machine when it was bought five years
ago.?
v * 0.74^5 = 300
To calculate the value of the machine when it was bought five years ago, we need to find the original value before depreciation.
Given that the machine has a value of $300 five years after purchase and that the depreciation rate is 26% per year, we can use the formula for calculating depreciation:
Value after depreciation = Initial value - (Depreciation rate * Initial value)
Let's denote the initial value as "x."
Value after depreciation = x - (0.26 * x)
After five years, the value is $300:
$300 = x - (0.26 * x)
To solve for x, we can simplify the equation:
$300 = x(1 - 0.26)
$300 = x(0.74)
Divide both sides of the equation by 0.74:
$300 / 0.74 = x
x ≈ $405.405
Therefore, the value of the machine when it was bought five years ago is approximately $405.405.