Assume the Value of an RV Depreciates by 22% Every

question 143

Essay

Assume the value of an RV depreciates by 22% every year.
(a)Make a table of the factor of decrease in the value of the RV for 0 to 3 years.For each year,write an expression for the factor of decrease in the value of the RV as a power of some base.
(b)What base did you use? How does the base relate to the problem?
(c)Use your table to graph the factor of decrease as a function of years.
(d)Use your graph to guess when your RV will be worth a tenth of its original price.
(e)Using the table you made,write a function for the depreciation as a function of years.Use a graphing calculator to graph your function.Use the graph to estimate when the RV will be worth a tenth of its original value.Compare this answer with the guess you made from your graph.

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Definitions:

Net Income

The remaining profit for a company after deducting taxes and expenses from the revenue.

Consolidation Entry

A journal entry used in the preparation of consolidated financial statements to eliminate intercompany transactions and balances.

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends.

Equity Method

An accounting technique used to record investments in other companies, recognizing income based on the investee's profit or loss.