Machine depreciation

The initial price of the machine is 23,000 euros. Every year, 12% of its cost is depreciated due to wear and tear. What value will the machine have after six years?

Final Answer:

x =  10681.294 Eur

Step-by-step explanation:

$$\begin{gathered} a=23000 \\ q=100\%-12\%=1-\frac{12}{100}=0.88 \\ n=6 \\ x=a\cdot q^n=23000\cdot 0.88^6=10681.294\text{Eur} \end{gathered}$$

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