7
advanced-math

The value of a machine is V(t)=10000(0.8)tV(t) = 10000(0.8)^t. What is the rate of depreciation?

A

80%

B

20%

C

0.8%

D

0.2%

Correct Answer: B

Choice B is the correct answer. Find rr from b=1rb = 1 - r.

  1. Identify Factor: b=0.8b = 0.8.
  2. Solve for r: 0.8=1rr=0.20.8 = 1 - r \implies r = 0.2.
  3. Convert: 0.2=20%0.2 = 20\%.

💡 Strategic Tip: If you keep 80%, you lost 20%.

Choice A is incorrect because 80% is what remains. Choice C is incorrect because it confuses decimal places.