Question

The depreciation on the value of a forklift over time is based on the equation V(t)=p(0.8)^twhere P represents the original price and V(t) represents the value of the forklift after t years. What does the original price of the forklift have to be if it is worth $20,000 after 5 years?

61036
61035
5490
6554

Answer 1

[AI-generated answer — Bot GPT 3.5]

To find the original price of the forklift, we need to plug in the given values into the equation V(t) = P(0.8)^t and solve for P.

Given:
V(5) = $20,000
t = 5 years

V(5) = P(0.8)^5
$20,000 = P(0.8)^5

Divide both sides by (0.8)^5:
$20,000 / (0.8)^5 = P
$20,000 / 0.32768 = P
$61,036 = P

Therefore, the original price of the forklift must be $61,036.

The correct answer is 61036.