Question

Assume that x and y are related by a linear equation. A truck that cost $28,600 when new is expected to be worthless in 13 years. How much will it be worth in 9 years?

a) $15,200
b) $18,700
c) $21,300
d) $24,800

Answer 1

To find the value of the truck after 9 years, the yearly depreciation is calculated as $2,200. After 9 years, the truck's value would be $10,400, which does not match any of the provided answer choices.

Step-by-step explanation:

To solve the student's question regarding the value of the truck after 9 years, we must assume a linear depreciation over 13 years from a starting cost of $28,600 to a final value of $0.

Let's call the yearly depreciation rate Y. We can calculate Y by taking the initial cost and dividing it by the number of years in which it will depreciate to zero: Y = $28,600 / 13 years = $2,200 per year. Now, to find out how much the truck will be worth after 9 years, we subtract 9 times the yearly depreciation from the initial cost: $28,600 - (9 * $2,200) = $10,400. None of the given answer choices (a, b, c, d) corresponds to this calculation. However, the closest option to the calculated value would be (a) $15,200, yet, this is not correct based on the assumption.