Given :
One company buys a new bulldozer for $130800.
The company depreciates the bulldozer linearly over its useful life of 20 years. It salvage value at the end of 20 years is $19800.
To Find :
The value of the Bulldozer, V, as a function of how many years old it is, t.
Solution :
Let, the equation is :
V = mt + c .....1)
For, t = 0 years
V = m(0) +c = $130800.00
c = $130800.00
For, t = 20 years
V = 20m + c = $19800.00
Putting value of c in above equation, we get :
20m + $130800.00 = $19800.00
m = (19800.00-130800.00 )÷20
m = -5550
Putting value of m and c in equation 1, we get :
V = -5550t + 130800
Hence, this is the required solution.
