Chapter 1.2, Problem 75E

Business-Depreciation. A farmer buys a new tractor for $\text{\$157,000}$ and assumes that it will have a trade-in value of $\text{\$82,000}$ after 10 years. The farmer uses a constant rate of depreciation (commonly called straight-line depreciation-one of several methods permitted by the IRS) to determine the annual value of the tractor.

(A) Find a linear model for the depreciated value $V$ of the tractor $t$ years after it was

purchased.

(B) What is the depreciated value of the tractor after 6 years?

(C) When will the depreciated value fall below $\text{\$70,000?}$

(D) Graph $V$ for $\text{0}\le \text{t }\le \text{20 }$ and illustrate the answers from parts (B) and (C) on the graph.