After T Years, the Value of a Wheelchair Conversion Van $\frac { 7 } { 8 }$

question 27

Multiple Choice

After t years, the value of a wheelchair conversion van that originally cost $39,000 depreciates so that each year it is worth $\frac { 7 } { 8 }$ of its value for the previous year.Find a model for V(t) , the value of the van after t years.

• A) \(V ( t ) = - 39,000 \left( - \frac { 7 } { 8 } \right) ^ { t }\)
• B) \(V ( t ) = 39,000 \left( - \frac { 7 } { 8 } \right) ^ { t }\)
• C) \(V ( t ) = - 39,000 \left( \frac { 7 } { 8 } \right) ^ { t }\)
• D) \(V ( t ) = 39,000 \left( \frac { 7 } { 8 } \right) ^ { t }\)
• E) \(V ( t ) = 39,000 \left( \frac { 7 } { 8 } \right) ^ { - t }\)

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Definitions:

Current Ratio

A financial metric used to evaluate a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Perpetual Inventory System

An accounting method where inventory levels are updated continuously as transactions occur.

Gross Method

An accounting practice where discounts on purchases or sales are recorded gross, without deducting any purchase or sales discounts.

Inventory

The collective sum of all products and materials possessed by a company intended for either resale or production purposes, encompassing raw materials, unfinished products, and completed items.