Depreciation of Equipment For assets such as machines, whose market values drop rapidly in the early years of usage, businesses often use the double declining-balance method. In practice, a business firm normally employs the double declining-balance method for depreciating such assets for a certain number of years and then switches over to the linear method. The double declining-balance formula is V(n) = C(1-2)^ where C is the initial value of the asset in dollars, V(n) denotes the book value of the assets at the end of n years, and N is the number of years over which the asset is depreciated. A tractor purchased at a cost of $30,000 is to be depreciated by the double declining-balance method over 10 years. (a) What is the book value (in dollars) of the tractor at the end of 3 years? (b) What is the relative rate of change of the book value of the tractor at the end of 3 years?

Depreciation of Equipment For assets such as machines, whose market values drop rapidly in the early years of usage, businesses often use the double declining-balance method. In practice, a business firm normally employs the double declining-balance method for depreciating such assets for a certain number of years and then switches over to the linear method. The double declining-balance formula is V(n) = C(1-2)^ where C is the initial value of the asset in dollars, V(n) denotes the book value of the assets at the end of n years, and N is the number of years over which the asset is depreciated. A tractor purchased at a cost of $30,000 is to be depreciated by the double declining-balance method over 10 years. (a) What is the book value (in dollars) of the tractor at the end of 3 years? (b) What is the relative rate of change of the book value of the tractor at the end of 3 years?

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section6.8: Fitting Exponential Models To Data

Problem 1TI: Table 2 shows a recent graduate’s credit card balance each month after graduation. a. Use...

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