A typical combine harvester sells for $500,000. If the value of the combine depreciates 5.52% each year, how many years will it take to lose half of it's value? Round your answer to the nearest whole number of years.

Respuesta :

To model the given problem, we use the following exponential function:

[tex]V(t)=500,000(1-0.0552)^t.[/tex]

Now, we set the above equation to

[tex]V(t)=\frac{500,000}{2}=250,000=500,000(1-0.0552)^t.[/tex]

Solving for t, we get:

[tex]\begin{gathered} \frac{250,000}{500,000}=0.9448^{t,} \\ tln(0.9448)=ln(\frac{1}{2}), \\ t=\frac{ln(\frac{1}{2})}{ln(0.9448)}. \end{gathered}[/tex]

Finally, we get:

[tex]t\approx12\text{ years.}[/tex]

Answer:

[tex]12\text{ years.}[/tex]