Math Problem Statement

Suppose that a company has just purchased a new computer for ​$2400. The company chooses to depreciate using the​ straight-line method for 3 years. ​(a) Write a linear function that expresses the book value V of the computer as a function of its age x. ​(b) What is the domain of the function found in part ​(a)​? ​(c) Graph the linear function. ​(d) What is the book value of the computer after 2 ​years? ​(e) When will the computer have a book value of $ 1600$

Solution

Let’s solve this step-by-step.

(a) Writing the linear function for depreciation:

The straight-line depreciation method reduces the value of an asset by a fixed amount each year. For this problem:

  • The initial value of the computer is $2400\$2400.
  • The depreciation period is 3 years.
  • At the end of 3 years, the computer’s value will be $0\$0.

The depreciation per year is:

Depreciation rate=$240003=$800per year\text{Depreciation rate} = \frac{\$2400 - 0}{3} = \$800 \, \text{per year}

The book value VV of the computer decreases by $800 each year, so the linear function representing the book value V(x)V(x) as a function of its age xx (in years) is:

V(x)=2400800xV(x) = 2400 - 800x

Where:

  • V(x)V(x) is the book value after xx years.
  • xx is the age of the computer in years.

(b) Domain of the function:

The domain of the function corresponds to the time during which the depreciation takes place. The company depreciates the computer over 3 years, so the age xx must be between 0 and 3 years (inclusive). Therefore, the domain is:

Domain: [0,3]\text{Domain: } [0, 3]

(c) Graphing the linear function:

The function V(x)=2400800xV(x) = 2400 - 800x is a straight line with:

  • Y-intercept V(0)=2400V(0) = 2400, which represents the initial value.
  • X-intercept at x=3x = 3, where the book value drops to 00.

Let me sketch the graph for you.

(d) Book value after 2 years:

To find the book value after 2 years, substitute x=2x = 2 into the linear function:

V(2)=2400800(2)=24001600=800V(2) = 2400 - 800(2) = 2400 - 1600 = 800

So, the book value after 2 years is $800.

(e) When will the computer have a book value of $1600?

We can solve for xx by setting V(x)=1600V(x) = 1600:

1600=2400800x1600 = 2400 - 800x

Now solve for xx:

16002400=800x1600 - 2400 = -800x 800=800x-800 = -800x x=1x = 1

So, the computer will have a book value of $1600 after 1 year.


Would you like the graph or further details on any step?

Here are 5 related questions:

  1. How does straight-line depreciation compare to other methods like declining balance?
  2. What would the function look like if the depreciation were over 5 years instead of 3?
  3. How would the function change if the initial value of the computer were $3000?
  4. What happens to the graph if the depreciation rate is not constant?
  5. How does the domain affect the graph of the depreciation function?

Tip: Always ensure the domain reflects the useful life of the asset in straight-line depreciation problems.

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Math Problem Analysis

Mathematical Concepts

Linear Functions
Depreciation
Algebra

Formulas

Depreciation rate = (Initial Value - Salvage Value) / Useful Life
V(x) = 2400 - 800x

Theorems

Linear Equation Theorem

Suitable Grade Level

Grades 9-11