A bulldozer was purchased by a construction company for 2240

A bulldozer was purchased by a construction company for $224,000 and has a depreciated value of $100,000 after 8 years. if the value is depreciated linear from $224,000 to $100,000 find the linear equation that relates value V to time t.

What would it be after 12 years?

Solution

A bulldozer was purchased by a construction company for $224,000

initially t =0 ,V=224000

so coordinates are (0,224000)

has a depreciated value of $100,000 after 8 years

after 8 years t =8 ,V=100000

so coordinates are (8,100000)

for linear equation joining (0,224000), (8,100000) by 2 point form

V-224000= [^{(100000-224000)}/_(8-0)](t-0)

V-224000= [^(-124000)/₍₈₎]t

V-224000= -15500t

V= -15500t+ 224000

V=224000 -15500t is the  linear equation

after 12 years t =12

value of V after 12 years =224000 -(15500*12) =38000$