buys a new asphalt road paver. The paver costs $50500. Value of the paver decreases each year. It decreases so much that it can only be sold for $2500 for parts.

Question

Identifying domain and range. Quantities and relationship

Answer 1

v=50500(1-0.01r)ᵗ where t is time in years (domain) and v (codomain) the value in dollars of the paver after t years following purchase. The range is 2500 to 50500 dollars. The depreciation rate r% (assumed fixed) can be determined from the number of years it takes to depreciate to $2500. For example, if n=10 years, 2500=50500(1-0.01r)¹⁰, from which r=100(1-(5/101)^0.1)=25.96%.