Question

Accountants use a method called depreciation to keep track of how the business's property changes value over time. This tracks, for example, the property wearing out with use.
A company buys a new truck for $37,500. Their accountant is considering two possible methods for tracking the truck's depreciation.
• If the accountant uses linear depreciation, they will use a linear function, with the truck's value decreasing at a rate of $2500 per year. This gives the equation y=-2500x + 37500
• If the accountant uses exponential depreciation, they will use an exponential function, with the truck's value decreasing by 9% each year. This gives the equation y = 37500 (0.91)
In both of these equations, æ represents the time (in years) since the truck was purchases, and y represents the value of the truck.
Use your calculator to solve this system. Give the solution where x is not 0. Round answers to two decimal places.
y=
In reality, the accountant will record the truck's value once a year when balancing the books, so only integer values will be plugged in for 2. Fill in the blanks below to interpret this solution.
• Both models use the same initial value of $
• Until year the Select an answer depreciation model records a higher value for the truck.
• Then, from year for the truck. onward, the Select an answer depreciation model records a higher value

Answers

GPT 3.5
y= 26875.00

• Both models use the same initial value of $37,500.
• Until year 3, the linear depreciation model records a higher value for the truck.
• Then, from year 4 onward, the exponential depreciation model records a higher value for the truck.