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Straight-line Depreciation Suppose that a company has just purchased a new computer for \(3000. The company chooses to depreciate the computer using the straight-line method over 3 years.

(a) Write a linear model that expresses the book value V of the computer as a function of its age x.

(b) What is the implied domain of the function found in part (a)?

(c) Graph the linear function.

(d) What is the book value of the computer after 2 years?

(e) When will the computer have a book value of \)2000?

Short Answer

Expert verified

Part (a) The function is V(x)=-1000x+3000

Part (b) The implied domain of the function is x|0≤x≤3.

Part (c) The graph is

Part (d) The book value of the computer after 2 years $1000.

Part (e) After 1 year a book value of the computer will be $2000.

Step by step solution

01

Part (a) Step 1. Given Information.

A company has just purchased a new computer for $3000. The company choose depreciation of the computer using the straight-line method over 3 years.

02

Part (a). Step 2. Explanation.

Find a linear model that expresses the book value V of the computer as a function of its agex.

The original value of computer as V(0)is $3000. This y-intercept of the linear function.

The depreciation per year is 30003=1000. So, slope is -1000.

The linear function that represents the book value V of the computer as a function of its agexisV(x)=-1000x+3000.

03

Part (b). Step 1. Explanation.

Find the implied domain of the function.

The depreciation period of the computer is 3 yrs.

so x varies from0 to 3.

The implied domain of the function isx|0≤x≤3.

04

Part (c). Step 1. Explanation.

the graph of the linear function on domain 0,3is as follows.

05

Part (d). Step 1. Explanation.

Find the book value of the computer after 2 years.

Here, x=2

Substitute x=2in role="math" localid="1646849549182" V(x)=-1000x+3000.

V(x)=-1000x+3000=-10002+3000=1000

The book value of the computer after 2 years is $1000.

06

Part (e). Step 1. Explanation.

Find by when a book value of the computer will be $2000.

we have V(x)=2000Find x.

V(x)=-1000x+30002000=-1000x+3000-1000=-1000x1=x

After 1 year a book value of the computer will be $2000 .

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