Math 1313
Homework 1
Sections 1.3
1
Use the following problem to answer questions 1 – 3.
A $1,000,000 building is depreciated linearly over 40 years.
The scrap value will be $0.
1.
Find the rate of depreciation.
a.
-$25,000
b.
-$1,000,000
c.
$1,000,000
d.
$25,000
e.
$960,000
f.
None of the above.
2.
Find an expression for the building value in the t
th
year of use (0 <
t <
40).
a.
V(t) = -25,000t
b.
V(t) = -25,000t + 1,000,000
c.
V(t) = 25,000t - 1,00,000
d.
V(t) = 25,000t + 1,000,000
e.
V(t) = 25,000t
f.
None of the above.
3.
Find the building value at the end of the 18
th
year.
a.
$450,000
b.
$600,000
c.
$200,000
d.
$400,000
e.
$550,000
f.
None of the above.
Use the following problem to answer questions 4 and 5.
In 2001 a company installed a new machine in one of its factories at a cost of $580,000.
The
machine is linearly depreciated over 24 years with a scrap value of $16,000.
4.
Find an expression for the machine value in the t
th
year of use (0 <
t <
24).
a.