Answer:
Cost of equipment after n years = 300000 x 0.86ⁿ
Step-by-step explanation:
A construction company purchased some equipment costing $300,000.
Price of equipment = 300000 $
The value of the equipment depreciates (decreases) at a rate of 14% per year.
Let c(n) be the cost of equipment after n years.
[tex]\texttt{Cost of equipment after 1 year =}300000-\frac{14}{100}\times 300000=0.86^1\times 300000\$\\\\\texttt{Cost of equipment after 2 years =}0.86^2\times 300000\$\\\\\texttt{Cost of equipment after 3 years =}0.86^3\times 300000\$\\\\\texttt{Cost of equipment after n years =}0.86^n\times 300000\$[/tex]
Cost of equipment after n years = 300000 x 0.86ⁿ
