Answer:
The value of the machinery after 5 years is $236.20
Step-by-step explanation:
Generally, we have the depreciation exponential expression as;
V(t) = I (1 - r)^t
V(t) is the value of the machinery at a point in time
I is the initial value or the cost of the machinery when bought which is $400
r is the rate of decrease which is 10% and is same as 10/100 = 0.1
t is the time which is 5 years
Substituting these values;
V(5) = 400( 1 - 0.1)^5
V(5) = 236.196
to the nearest vent, this is $236.20
