A business spends $75,000 to purchase equipment that depreciates by 8% annually. Which equation represents the depreciation after x years? Responses

An 8% annual depreciation means the equipment retains 100% − 8% = 92% of its value each year, so its value is multiplied by 0.92 repeatedly. After x years, the value is y = 75,000(1 − 0.08)^x. This is choice C; choice A subtracts a fixed amount each year rather than 8% of the changing value.

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