Question

For tax and accounting purposes businesses often have to depreciate equipment values over time. One method of depreciation is the straight-line method. Three years ago Hilde Construction purchased a bulldozer for $51,500. Using the straight-line method, the bulldozer has now depreciated to a value of $43,200. If V equals the value at the end of year t, write a linear equation expressing the value of the bulldozer over time. How many years from the purchase date will the value equal $0?

Answer 1

V(t) = 51500 - (51500-43200)/3 t
Now just find t when V=0.