A charter fishing company buys a new boat for $224,000 and assumes that it will have a trade-in value of $115,200 after 16 years. Find a linear model for the depreciated value V of the boat t years after it was purchased.

Question

A charter fishing company buys a new boat  for $224,000 and assumes that it will have a trade-in value of $115,200 after 16 years. Find a linear model for the depreciated value V of the boat t years after it was purchased.

Reiny · Accepted Answer

change in value = 224000-115200 = 108800 change in time = 16 yrs rate of change = 108800/16 = 6800 value = -6800t + 224000 , where t is the number of years