Question

A $40, 000 vehicle depreciates $2, 500 a year as it ages. Repair costs are 2, 500 per year. (a) Find a formula for each of the two linear functions at time t, the vehicle value V (t), and repair cost C(t). (b) One strategy is to replace the vehicle when the total cost of the vehicle is equal to the current value of the vehicle. Find this time. (c) Another strategy is to replace the vehicle when the value of the vehicle is % of the original value. Find that time. Find this time.

part c) is missing 6%. So part (c) should read: Another strategy is to replace the vehicle when the value of the vehicle is 6% of the original value.

Answer 1