Math Problem Statement
Depreciation is the decrease or loss in value of an item due to age, wear, or market conditions. One company buys a new backhoe for $73,000. The company depreciates the backhoe linearly over its useful life of 25 years. Its salvage value at the end of 25 years is $13,000. a) Construct a linear equation in the slope-intercept form that models the value, V(t), of the backhoe as a function of its age t in years. b) Use your model to find the value of the backhoe after 6 years.
Solution
Let's break down and solve the given problem step by step:
Part a) Construct a linear equation for the value of the backhoe as a function of its age in years.
We are given:
- The initial value of the backhoe is $73,000.
- The backhoe depreciates linearly over 25 years.
- Its salvage value at the end of 25 years is $13,000.
The general equation of a line is in the form: Where:
- is the slope (rate of depreciation per year),
- is the age in years,
- is the initial value (when ).
Step 1: Determine the slope .
The slope is the rate of depreciation, which is the change in value divided by the change in time: So, the value of the backhoe decreases by $2,400 per year.
Step 2: Write the equation.
We know that at , , so .
Thus, the equation for the value of the backhoe is:
Part b) Use your model to find the value of the backhoe after 6 years.
We can substitute into the equation ( V(t) = -2400t +
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Math Problem Analysis
Mathematical Concepts
Algebra
Linear Equations
Depreciation
Formulas
Slope-intercept form V(t) = mt + b
Theorems
Linear depreciation
Suitable Grade Level
Grades 9-11