Question

The value of many things we own depreciates over time. When an asset's value decreases by a fixed amount each year, the depreciation is called straight-line depreciation. Suppose your Ford Escape from Exercise 1 depreciates $1950 per year.

a.Let v represent the value of your ford Escape after t years. Write a symbolic.

b. What is the value of the car after 4 years?

c. How long will it take for the value of the car to decrease below $5000?

note the Ford Escape from exercise 1 has a $4500 credit toward purchase of new car and the car payments are $420 a month.

Answer 1

a. V = C - 1950t.
C = Cost.

b . V = C - 1950*4.

c. V = C - 1950t = $5000.
-1950t = 5000 - C.
t = (5000-C) / -1950.