Question

A company paid ​$140 comma 000 for a new​ 18-wheeler. When it is 11 years old it will be worth ​$30 comma 000. Using​ straight-line depreciation, the value of the truck in​ dollars, V, is a linear function of its age in​ years, n. Find the function and the value when the truck is 7 years old.

Answer 1

Answer:

V(n)=140,000-10000n

V(7)=$70,000

Explanation:

Purchase Cost= $140,000

Value After 11 Years =$30,000

Depreciation per Year = $\frac{140000-30000}{11} = \frac{110000}{11} =10000$

The truck depreciates at a rate of $10000 per year.

Using​ straight-line depreciation, the value of the truck in​ dollars, V

The linear function of its age in years n, V(n)=140,000-10000n

When the truck is 7 years old

n=7

Truck's Value, V(n)=140,000-10000n

=140,000-(10000X7)

=140,000-70000

=$70,000