Question

One company buys a new bulldozer for $130800. The company depreciates the bulldozer linearly over its useful life of 20 years. It salvage value at the end of 20 years is $19800. Express the value of the Bulldozer, V, as a function of how many years old it is, t. Make sure to use function notation

Answer 1

Given :

One company buys a new bulldozer for $130800.

The company depreciates the bulldozer linearly over its useful life of 20 years. It salvage value at the end of 20 years is $19800.

To Find :

The value of the Bulldozer, V, as a function of how many years old it is, t.

Solution :

Let, the equation is :

V = mt + c .....1)

For, t = 0 years

V = m(0) +c = $130800.00

c = $130800.00

For, t = 20 years

V = 20m + c = $19800.00

Putting value of c in above equation, we get :

20m + $130800.00 = $19800.00

m = (19800.00-130800.00 )÷20

m = -5550

Putting value of m and c in equation 1, we get :

V = -5550t + 130800

Hence, this is the required solution.