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Find a formula that calculates the tractor worth

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Reference no: EM13178342

Suppose a business purchases a new tractor at an original cost of $42,000. Further, suppose this tractor has a useful life of 8 years and a salvage value of $10,000.

a) Use the Straight-Line Method to find the yearly depreciation on this tractor.
b) How much is this tractor worth after 3 years?
c) Find a formula that calculates the tractor's worth after t years. What is the maximum allowable value for t?

Reference no: EM13178342

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