How do you determine the value of an x-ray machine after 5 year if it cost $216 thousand and Margaret Madison, DDS, estimates that her dental equipment loses one sixth of its value each year?

garnirativ8

garnirativ8

Answered question

2022-09-28

How do you determine the value of an x-ray machine after 5 year if it cost $216 thousand and Margaret Madison, DDS, estimates that her dental equipment loses one sixth of its value each year?

Answer & Explanation

Gianna Walsh

Gianna Walsh

Beginner2022-09-29Added 7 answers

Each year the value of a piece of equipment becomes 5 6 of its previous year value.
Initial value = 216 thousand dollars
Value after 1 y e a r = ( 26 ) 5 6 thousand dollars
Value after 2 y e a r s = ( ( ( 26 ) 5 6 ) 5 6 ) 5 6 thousand dollars
Value after 3 y e a r s = ( ( ( 26 ) 5 6 ) 5 6 ) 5 6 thousand dollars
Value after 4 y e a r s = ( ( ( 26 ) 5 6 ) 5 6 ) 5 6 ) 5 6 thousand dollars
Value after 5 y e a r s = ( ( ( ( ( 26 ) 5 6 ) 5 6 ) 5 6 ) 5 6 ) 5 6 thousand dollars
Or more simply (and hopefully obviously by now)
Value after 5 y e a r s = 26 ( 5 6 ) 5 thousand dollars
($10,449 to the nearest dollar, if this is important)

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