SOLUTION: I cannot figure out how to go about solving this problem. A factory owner buys a new machine for $5000. After 10 years the machine has a value of $150. Find a formula for the va
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Question 22119: I cannot figure out how to go about solving this problem. A factory owner buys a new machine for $5000. After 10 years the machine has a value of $150. Find a formula for the value of the machine after t years for 0 is less than or equal to t and t is less than or equal to 10. Answer by rapaljer(4671) (Show Source):
You can put this solution on YOUR website! The machine depreciated from $5000 to $150 for a total depreciation of $4850 over 10 years. This is a depreciation of $4850/10yr = $485 per year.
The machine begins with a value of %5000. After t years, it depreciates a total of 485t. Therefore, the formula for the value of the machine after t years is
V(t) = $5000 - 485t,
