Depreciation A Dell Inspiron 8600 laptop computer that costs $1150 new has a book value

Chapter 3, Problem 44

(choose chapter or problem)

Depreciation A Dell Inspiron 8600 laptop computer that costs $1150 new has a book value of $550 after 2 years. (a) Find the linear model (b) Find the exponential model (c) Use a graphing utility to graph the two models in the same viewing window. Which model depreciates faster in the first 2 years? (d) Find the book values of the computer after 1 year and after 3 years using each model. (e) Explain the advantages and disadvantages to a buyer and a seller of using each model.

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