For each of the following situations: write an exponential growth or decay function and answer the question posed.

Ex) A tool and die business purchases a piece of equipment for \$250,000. The value depreciates at the rate of 12% each year. What is the value of the equipment after 5 years?

Quote by cefasnacht
Quote by Dobzilla
I've never had peanutbutter...
wtf!?!?!?!
dunno about the growth or decay bit.

But 250,000 -(250,000*0.12) = Year 1
Year 1 - (Year 1*0.12) = Year 2

etc

dont know if thats any help...

edit - Does it depreciate in a reducing balance or straight line method?
Originally posted by Diminishedfaith

6. Lied? Would I?
10. Done LSD? who's she?
17. Cheated on someone? it was an accident, i didnt remember i had the gameshark on.....
41. Been called a *****?yes, they rate me 5 stars...
46. Kissed someone in a moving vehicle?no, i dont have insurance
Hm...PeRT comes to mind.

principle times the natural number to the power of (the rate of interest times the time)

250,000*e^(-.12*5)

That gives you 137,202.91

I have no clue if that is right or not, but I always knew PeRT could be used for something or other to do with math.
Find 12% of 250,000, take it away, find 12% of that answer,l take away.

Repeat.

^you guys, he needs to write a FUNCTION. They don't just want to know the \$\$, they want a function for it!
haha yeah thanks jahjahwarrior. i don't think PeRT works here because it has nothing to do with compounding money. i could be wrong, but i'm pretty sure i can't use that.

Quote by cefasnacht
Quote by Dobzilla
I've never had peanutbutter...
wtf!?!?!?!
Last edited by Grunge at Nov 14, 2007,
PeRT is the formula used for continously compounding money. I don't know what you mean when you say it has "nothing to do with" compounding money. If you are continuously compounding, you use PeRT. If you are only compounding once a year, you use

final value= P(1+r)^n

or 250,000(1+-.12)^5

or 131932.98

Something seems a little funky, because it actually lost a few thousand more when compounding once a year than when compounding continually....but the formulas should be correct.
maybe you're right. i always thought that PeRT was for "depositing money and gaining interest" problems. that answer seems a little low though, don't you think? then again, i'm not sure.

Quote by cefasnacht
Quote by Dobzilla
I've never had peanutbutter...
wtf!?!?!?!
gaining interest=compounding.

I'm not certain I'm right, but I know those are equations for compounding interest.

The numbers do seem low, perhaps you could call a classmate and ask them what they've gotten for it? Usually, you use PeRT and the other one for positive interest, not negative.