document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=270633>Question 270633</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A farmer purchases a truck for $45,000 and plans to depreciate it using a straight-line depreciation over 9 years. Write a linear function that represents the value V of the truck as a function of its age, t. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #198208 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=198208\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> he buys the truck for 45000 and depreciates it using straight line depreciation over 9 year.\r<BR>\n" );
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document.write( "45000 / 9 = 5000 per year.\r<BR>\n" );
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document.write( "his depreciation will be 5000 per year.\r<BR>\n" );
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document.write( "9 * 5000 = 45000 equals the original price of the truck.\r<BR>\n" );
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document.write( "the value of the truck is the amount of the original price of the truck that has not been depreciated.\r<BR>\n" );
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document.write( "V = 45000 - 5000*T where V = the remaining value of the truck and T = the age of the truck in years.\r<BR>\n" );
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document.write( "when the truck is new, its value is 45000 - 5000*0 = 45000\r<BR>\n" );
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document.write( "when the truck is fully depreciated in 9 years, its value is 45000 - 5000*9 = 45000 - 45000 = 0.\r<BR>\n" );
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document.write( "this is not the true value of the truck.\r<BR>\n" );
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document.write( "this is the book value based on the original cost minus the depreciated amount.\r<BR>\n" );
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document.write( "the truck has market value which is different from the book value.\r<BR>\n" );
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document.write( "that could be higher or lower than the book value depending on all kinds of stuff.\r<BR>\n" );
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document.write( "after 9 years, the truck has essentially been written off for depreciation purposes.\r<BR>\n" );
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document.write( "the depreciation each year is written off as an expense of the business.\r<BR>\n" );
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document.write( "after 9 years, the depreciation on the truck cannot be written off any further.\r<BR>\n" );
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document.write( "the truck is considered fully expensed after the 9 years.\r<BR>\n" );
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