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The time .
Where
is present value of truck, is initial value of truck and is annual rate of depreciation.
Initial value of truck is.
a.
Find how much time passed to purchase.
Truck present value is and annual rate of depreciation is .
Substitute , and in .
Change of base formula is .
Apply change of base formula to logarithm expression .
The time to purchase is years.
b.
Find how much time passed to purchase.
Truck present value is and annual rate of depreciation is .
Substitute , and in .
Change of base formula is .
Apply change of base formula to logarithm expression .
The time to purchase is years.
a. The time to purchase is years.
b. The time to purchase is years.
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