A machine purchased for business use depreciates, or loses value, over a period of years. The value of the machine at the end of its useful life is its scrap value. By one method of depreciation, the scrap value, S, is given by

where C is original cost, n is useful life in years, and r is the constant percent of depreciation.(a) Find the scrap value of a machine costing $30,000, having a useful life of 12 yr and a constant annual rate of depreciation of 15%. Round to the nearest dollar.(b) A machine has a “half-life” of 6 yr. Find the constant annual rate of depreciation, to the nearest percent.

Transcribed Image Text:

S = C(1-r)",