Answer:
V = -11,000n + $150,000; $62,000
Explanation:
Given that,
Cost of new 18-wheeler = $150,000
When it is 9 years old, worth = $51,000
Let the function be: V = xn + y
where,
x and y are constants.
V = value of the truck in dollars
n = age in years
When n = 0, V = $150,000
When n = 9, V = $51,000
According to the equation,
When n = 0, V = $150,000
$150,000 = x(0) + y
$150,000 = y
When n = 9, V = $51,000
V = xn + y
$51,000 = x(9) + $150,000
$51,000 - $150,000 = 9x
-$99,000 = 9x
-$11,000 = x
Function: V = -11,000n + $150,000
Therefore,
When the truck is 8 years old, the value of truck is as follows:
= xn + y
= (-$11,000)(8) + $150,000
= -$88,000 + $150,000
= $62,000
