A farmer purchases a new tractor for $116200 and expects to sell in 12 years for 25,000

Question

Find a linear model v (t) for the depreciated value of the tractor t years after the purchase

Answer 1

A linear model follows the pattern y = mx + b where m is the rate and b is the initial value at x = 0.

In this case at time = 0, the value is 116200.

The rate is determined by dividing the change in value by the change in time. The change in value is 116200 - 25000 or 91200. The change in time is 12 years. So 91200/12 = $7600/year.

So the equation is v(t) = 116200 - 7600t