A company purchases office equipment for $8,000 After one year, the value of the equipment depreciates to $6,400 , and after two years, it is worth $5,120 The equipment depreciates exponentially each year. Which equation models the equipment's depreciation?

The equipment’s value changes by the same factor each year: $6,400 ÷ $8,000 = 0.8, and $5,120 ÷ $6,400 = 0.8. A factor of 0.8 means the equipment keeps 80% of its value each year, so it depreciates by 20% annually. The model is y = 8,000(1 − 0.20)^x, choice C.

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