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-A Veterinarian Depreciates A $\$ 10,000$ X-Ray Machine $V ( t )$

Multiple Choice

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-A veterinarian depreciates a $\$ 10,000$ X-ray machine. He estimates that the resale value $V ( t )$ (in $\$$ ) after $t$ years is $90 \%$ of its value from the previous year. Therefore, the resale value can be approximated by $V ( t ) = 10,000 ( 0.9 ) ^ { t }$ .
a. Find the resale value after $3 \mathrm { yr }$ .
b. If the veterinarian wants to sell his practice $10 \mathrm { yr }$ after the X-ray machine was purchased, how much is the machine worth? Round to the nearest $\$ 100$ .

A) a. $\$ 7,290$ ; b. $\$ 3,500$
B) a. $\$ 2,710$ ; b. $\$ 3,500$
C) a. $\$ 2,710 ;$ b. $\$ 6,500$
D) a. $\$ 7,290 ;$ b. $\$ 6,500$