Question

What is the formula to calculate the book value of a machine in dollars based on its age expressed in years, as given by the equation: v = 60,000 - 7,500t?

Answer 1

The formula given is v = 60,000 - 7,500t, used to calculate the book value of a machine based on its age. By substituting the age into 't', the book value can be found through simple subtraction.

Step-by-step explanation:

The formula to calculate the book value of a machine based on its age in years is given by v = 60,000 - 7,500t, where 'v' represents the book value in dollars and 't' represents the age of the machine in years.

To use this formula, you simply need to plug in the age of the machine for 't' and perform the subtraction. For example, if a machine is 3 years old, the calculation would be:

v = 60,000 - 7,500(3)

v = 60,000 - 22,500

v = 37,500

So, the book value of the machine that is 3 years old would be $37,500.