Question #28721

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Answer 1 · 2018-02-22T15:13:29

#t\approx13\ \text{years}#

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

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}}#

# #
# #
# #

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#

# #
# #

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}#