Question

Question #28721

Answer 1

`t\approx13\ \text{years}`

The answer is rounded off from `13.2` to `13`.

Explanation:

Depreciation expense under straight line method is calculated by dividing the depreciable amount of the fixed asset by the useful life of the asset.

`\text{Depreciation Expense} = {\text{Depreciable Amount}}/{\text{Useful Life}}`

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The value of the car at one year would be `$25000-$1250` and after two years `$25000-2($1250)`.

If `t` represents the number of year, we can find the value of car by using the function:

`V(t)=25000-1250t`

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To find the number of years for which the value of car depreciates to `$8500` just put `V(t)=8500` and solve the equation for `t`.

`8500=25000-1250t`

Solve it by yourself to get:

`t\approx13\ \text{years}`