A sport utility vehicle that costs $23,300 new has a book value of $12500 after 2 years.

Maiclubk

Maiclubk

Answered question

2021-02-13

A sport utility vehicle that costs $23,300 new has a book value of $12500 after 2 years.
Linear model: V=5400t+23300
Exponential model: V=23,300e0.311t
Find the book values of the vehicle after year and after 3 years using each model.

Answer & Explanation

delilnaT

delilnaT

Skilled2021-02-14Added 94 answers

Given two models for book value of sports utility vehicle
Linear model: V=5400t+23300
Exponential model: V=23,300e0.311t
After a year i.e put t=1
Book Value (V)=54001+23300
=$17900
Using exponential model
Book value (V)=23300e(0.3111)
=233000.7327
=$17,070
After three years i.e put t=3
Using linear model
Book value (V)=54003+23,300
=16200+23300
=$7,100
Using exponential model
Book value (V)=233000.3934
=$9,165

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