A $2,000 bicycle depreciates at a rate of 10% per year.
After how many years will it be worth less than $1,000?
o 5 years
o 7 years
o 10 years
o 100 years
we know that
the equation that represent this problem is equal to
[tex]y=a(1-r)^x[/tex]where
y -----> the value of the bici
a=2,000
r=0.10
substitute
For y=1,000
[tex]\begin{gathered} 1,000=2,000(1-0,10)^x \\ 0.5=0.9^x \\ \log (0.5)=x\cdot\log (0.90) \\ x=6.57\text{ years} \end{gathered}[/tex]greater than 6.57 years
answer is 7 years
