Depreciation and Linear Functions

The video tutorial explains how to calculate the depreciation of a bulldozer purchased for $117,650, with a salvage value of $10,650 after 20 years. The depreciation is linear, and the tutorial guides viewers through setting up a linear equation to express the bulldozer's value over time. It covers calculating the slope of the depreciation line and formulating the equation. Finally, it demonstrates how to determine the bulldozer's value after six years, resulting in a value of $85,550.

What is the initial cost of the bulldozer purchased by the company?

• $117,650

• $10,650

• $20,000

• $100,000

How many years is the bulldozer's useful life?

• 10 years

• 15 years

• 25 years

• 20 years

What is the salvage value of the bulldozer after 20 years?

• $5,350

• $10,650

• $50,000

• $117,650

In the linear equation for depreciation, what does the variable 't' represent?

• The initial cost

• The age in years

• The depreciation rate

• The salvage value

What is the slope of the depreciation line?

• $10,650

• -$10,650

• $5,350

• -$5,350

How is the slope of the depreciation line calculated?

• Initial value minus salvage value

• Change in value divided by change in time

• Change in time divided by change in value

• Salvage value minus initial value

What is the linear equation for the bulldozer's value over time?

• v = 117,650 - 5,350t

• v = 117,650 + 5,350t

• v = 10,650 + 5,350t

• v = 10,650 - 5,350t

What does the slope of the line indicate in the context of depreciation?

• The total value after 20 years

• The initial cost of the bulldozer

• The decrease in value each year

• The increase in value each year

After how many years is the bulldozer's value calculated in part B?

• 6 years

• 10 years

• 5 years

• 20 years

What is the value of the bulldozer after six years?

• $95,000

• $100,000

• $90,000

• $85,550