Math Problem Statement
Solution
Let's analyze the problem.
(A) Linear Model for Depreciation
The problem states that a tractor was purchased for $158,000 and is expected to have a trade-in value of $89,000 after 10 years. The depreciation is assumed to be linear.
A linear depreciation model takes the form: where:
- is the value of the tractor after years,
- is the rate of depreciation (slope),
- is the initial value of the tractor.
Given:
- Initial value ,
- Value after 10 years .
Slope (Rate of Depreciation)
The slope is calculated by the change in value over time:
Linear Model Equation
Substituting the slope and the initial value into the equation:
This matches the linear model provided in the problem:
(B) Depreciated Value After 6 Years
To find the value of the tractor after 6 years, substitute into the linear model:
Calculating this:
Thus, the depreciated value of the tractor after 6 years is $116,600.
Would you like further details or have any questions?
Here are five related questions:
- How would the depreciation model change if the tractor's value after 10 years was different?
- What is the significance of the slope in the depreciation model?
- How can we use this model to predict the value of the tractor after 15 years?
- What would happen if the depreciation was not linear?
- How could we calculate the year when the tractor's value drops below a certain threshold?
Tip: Always double-check your units and ensure consistency when plugging values into equations to avoid calculation errors.
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Math Problem Analysis
Mathematical Concepts
Linear Equations
Depreciation
Algebra
Formulas
Linear depreciation model V(t) = mt + b
Slope formula m = (V(10) - V(0)) / (10 - 0)
Theorems
-
Suitable Grade Level
Grades 9-12