Answer:
[tex]V(n) =140000-10000n[/tex]
The cost of truck when the truck is 8 years old is $60,000
Step-by-step explanation:
We are given the following in the question:
Cost of new truck = $140,000
Cost of truck when 9 years old = $41,000
The depreciation is given by the slope of line:
[tex]m =\dfrac{y_2-y_1}{x_2-x_1}=\dfrac{41000-140000}{9-0} = -10000[/tex]
Depreciation value = 10000
The value of truck is given by:
[tex]V = \text{Initial cost}-\text{Depretiation value}\times \text{Age of truck}[/tex]
Putting values, we get:
[tex]V (n)= 140000 - 10000(n)\\V(n) =140000-10000n[/tex]
Value of truck at 8 years old:
[tex]V(n) =140000-10000n\\V(8) =140000-10000(8) = 60000[/tex]
Thus, the cost of truck when the truck is 8 years old is $60,000
