A local bakery opened with new equipment worth $80,000. Ten years later, the owners' accountants told them that their equipment had depreciated at a rate of 6 percent per year. Which equation would you use to create a sequence modeling this situation?
To create a sequence representing the depreciation of the bakery's equipment, we can use the equation:
A = P(1 - r/100)^n
where:
A = the value of the equipment after n years
P = the initial value of the equipment (in this case, $80,000)
r = the depreciation rate per year (in this case, 6 percent or 0.06)
n = the number of years
Therefore, the equation that represents this situation would be:
A = 80000(1 - 0.06)^n