Question

A delivery truck is purchased new for $58,000. Write a linear function of the form y...

A delivery truck is purchased new for $58,000.

  1. Write a linear function of the form y = mt + b to represent the value y of the vehicle t years after purchase. Assume that the vehicle is depreciated by $6580 per year.

  2. Suppose that the vehicle is depreciated so that it holds 70% of its value from the previous year. Write an exponential function of the form y = V0bt, where V0 is the initial value and t is the number of years after purchase.

  3. To the nearest dollar, determine the value of the vehicle after 4 yr and after 8 yr using the linear model.

  4. To the nearest dollar, determine the value of the vehicle after 4 yr and after 8 yr using the exponential model.

Math   Precalculus   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Storm Delivery Company purchased a new delivery truck for $53,400 on April 1, 2016. The truck...
Storm Delivery Company purchased a new delivery truck for $53,400 on April 1, 2016. The truck is expected to have a service life of 5 years or 150,000 miles and a residual value of $4,320. The truck was driven 8,200 miles in 2016 and 11,800 miles in 2017. Storm computes depreciation to the nearest whole month. Required: Compute depreciation expense for 2016 and 2017 using the For interim computations, carry amounts out to two decimal places. Round your final answers...
Pina Corporation purchased a delivery truck in early January 2016. The truck cost $88,800, and was...
Pina Corporation purchased a delivery truck in early January 2016. The truck cost $88,800, and was to be depreciated over 8 years, assuming no residual value. Pina decided to account for this truck using the revaluation model, with the truck to be revalued every two years. The truck’s fair value at the end of 2018 was $71,800. Prepare the journal entries to revalue the truck on December 31, 2018 assuming Pina uses the asset adjustment method. (Credit account titles are...
1. Determine a formula for the exponential function of the form y=C·b^x that passes through the...
1. Determine a formula for the exponential function of the form y=C·b^x that passes through the points (?1, 4) and (2, 256). If necessary, round the value of b to one decimal place. A) y=4·64^x B) y=4·8^x C) y=16·8^x D) y=4·84^x E) y=16·4^x
Exponential Functions Question 18 Please answer a-b a) A vehicle purchased for $27,500 depreciates at a...
Exponential Functions Question 18 Please answer a-b a) A vehicle purchased for $27,500 depreciates at a constant rate of 6%. Determine the approximate value of the vehicle 1414 years after purchase. Round to the nearest whole dollar. $___________________________? b)You deposit $5000 in an account earning 5% interest compounded continuously. How much will you have in the account in 15 years? $____________________________? c)You deposit $2000 in an account earning 6% interest compounded monthly. How much will you have in the account...
Problem 8-48 (a) (LO. 2, 5, 9) Burt purchased $58,000 of new computers for his business...
Problem 8-48 (a) (LO. 2, 5, 9) Burt purchased $58,000 of new computers for his business in May of the current year. Burt understands that if he elects to use ADS to compute his regular income tax, there will be no difference between the cost recovery for computing the regular income tax and the AMT. Burt wants to know the regular income tax cost, after three years, of using ADS rather than MACRS. Assume that Burt does not elect §...
1. Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $15,000 for the truck....
1. Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $15,000 for the truck. The truck is expected to have a $2,500 residual value and a 5-year life. Cambridge has a December 31 fiscal year end. Using the double-declining balance method, how much is the 2019 depreciation expense? (Enter only whole dollar values.) Hint: what is the year 2 depreciation amount? 2. Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $22,000 for the truck. The...
1. Davis Industries must choose between a gas-powered and an electric-powered forklift truck for moving materials...
1. Davis Industries must choose between a gas-powered and an electric-powered forklift truck for moving materials in its factory. Because both forklifts perform the same function, the firm will choose only one. (They are mutually exclusive investments.) The electric-powered truck will cost more, but it will be less expensive to operate; it will cost $21,500, whereas the gas-powered truck will cost $17,960. The cost of capital that applies to both investments is 13%. The life for both types of truck...
Rapid Delivery, Inc., is considering the purchase of an additional delivery vehicle for $30,000 on January...
Rapid Delivery, Inc., is considering the purchase of an additional delivery vehicle for $30,000 on January 1, 2016. The truck is expected to have a five-year life with an expected residual value of $5,000 at the end of five years. The expected additional revenues from the added delivery capacity are anticipated to be $48,000 per year for each of the next five years. A driver will cost $33,000 in 2016, with an expected annual salary increase of $3,000 for each...
Net Present Value Method Rapid Delivery, Inc., is considering the purchase of an additional delivery vehicle...
Net Present Value Method Rapid Delivery, Inc., is considering the purchase of an additional delivery vehicle for $39,000 on January 1, 2016. The truck is expected to have a five-year life with an expected residual value of $7,000 at the end of five years. The expected additional revenues from the added delivery capacity are anticipated to be $49,000 per year for each of the next five years. A driver will cost $33,000 in 2016, with an expected annual salary increase...
Net Present Value Method Rapid Delivery, Inc., is considering the purchase of an additional delivery vehicle...
Net Present Value Method Rapid Delivery, Inc., is considering the purchase of an additional delivery vehicle for $57,000 on January 1, 2016. The truck is expected to have a five-year life with an expected residual value of $5,000 at the end of five years. The expected additional revenues from the added delivery capacity are anticipated to be $77,000 per year for each of the next five years. A driver will cost $54,000 in 2016, with an expected annual salary increase...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT