Business-Depreciation. A farmer buys a new tractor for $157,000 and assumes that it will have a trade-in value of $82,000 after 10 years. The farmer uses a constant rate of depreciation (commonly called straight-line depreciation-one of several methods permitted by the IRS) to determine the annual value of the tractor. (A) Find a linear model for the depreciated value V of the tractor t years after it was purchased. (B) What is the depreciated value of the tractor after 6 years? (C) When will the depreciated value fall below $70,000? (D) Graph V for 0 ≤ t ≤ 20 and illustrate the answers from parts (B) and (C) on the graph.
Business-Depreciation. A farmer buys a new tractor for $157,000 and assumes that it will have a trade-in value of $82,000 after 10 years. The farmer uses a constant rate of depreciation (commonly called straight-line depreciation-one of several methods permitted by the IRS) to determine the annual value of the tractor. (A) Find a linear model for the depreciated value V of the tractor t years after it was purchased. (B) What is the depreciated value of the tractor after 6 years? (C) When will the depreciated value fall below $70,000? (D) Graph V for 0 ≤ t ≤ 20 and illustrate the answers from parts (B) and (C) on the graph.
Solution Summary: The author calculates the linear equation for the depreciated value V of the tractor, t years after it was purchased.
Business-Depreciation. A farmer buys a new tractor for
$157,000
and assumes that it will have a trade-in value of
$82,000
after 10 years. The farmer uses a constant rate of depreciation (commonly called straight-line depreciation-one of several methods permitted by the IRS) to determine the annual value of the tractor.
(A) Find a linear model for the depreciated value
V
of the tractor
t
years after it was
purchased.
(B) What is the depreciated value of the tractor after 6 years?
(C) When will the depreciated value fall below
$70,000?
(D) Graph
V
for
0
≤
t
≤
20
and illustrate the answers from parts (B) and (C) on the graph.
A network server has an original value of 10, 000 and is to be depreciated linearly over 5 years with a 3000 scrap value. Find an expression giving the book value at the end of year t . What will be the book value of the server at the end of the second year? What is the rate of depreciation of the server?
Suppose that a library contains 12,000 books now, and adds 200 books every month.
(a) Write an explicit formula for a linear model that describes this growth.
P =
Preview
(b) If this trend continues, how many books will the library contain in a year?
books
(c) How long will it be before the library contains 17,000 books? Round your answer to the nearest month.
months
10. Household Income The following table shows the
median income, in thousands of dollars, of Ameri-
can families for 2003 through 2008.
Year
Income (thousands of dollars)
2003
52.68
2004
54.06
2005
56.19
2006
58.41
2007
61.36
2008
61.52
Chapter 1 Solutions
Finite Mathematics for Business, Economics, Life Sciences and Social Sciences
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