Problema Solution
The owner of Flat Broke Construction buys a back-hoe for $80,000. The life of a back-hoe is 10 years, and it will then have a salvage value of $7,500. Express the value of the back-hoe as a time function. What is the value of the back-hoe after 6 1/2 years?
Answer provided by our tutors
The time function is v(y)=(amount loss per year)(number of years)+(new price)
v(y)=(7250)(y)+80000
For 6.5 years
v(y)=(7250)(6.5)+80000
127125
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