A farmer buys a new tractor for $157,000 and assumes that it will have a trade-in value of $82,000 after 10 years. The farmer uses a constant rate of depreciation (commonly called straight-line depreciation— one of several methods permitted by the IRS) to determine the annual value of the tractor.
(A) Find a linear model for the depreciated value V of the tractor t years after it was purchased.
(B) What is the depreciated value of the tractor after 6 years?
(C) When will the depreciated value fall below $70,000?
(D) Graph V for 0 ≤ t ≤ 20 and illustrate the answers from parts (B) and (C) on the graph.