For assets such as machines, whose market values drop rapidly in the early years of of usage, businesses often use the double declining-balance method. In practice, a business firm normally employs the double declining- balance method for depreciating such assets for a certain number of years and then switches over to the linear method. The double-declining formula is V(n) = C(1-(2/n))^n where C is the initial value of the assest in dollars, V(n) denotes the book value of the assets at the end of n years, and N is the number of years over which the asset is depreciated A tractor purchased at a cost of $40,000is to depreciated by the double declining balance method over 10 years . (a) What is the book value of the tractor at the end of 3 years? (b) What is the relative rate of change of the book value of the tractor at the end of 3 years?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
For assets such as machines, whose market values drop rapidly in the early years of of usage, businesses often use the double declining-balance method. In practice, a business firm normally employs the double declining- balance method for depreciating such assets for a certain number of years and then switches over to the linear method. The double-declining formula is
V(n) = C(1-(2/n))^n
where C is the initial value of the assest in dollars, V(n) denotes the book value of the assets at the end of n years, and N is the number of years over which the asset is depreciated
A tractor purchased at a cost of $40,000is to depreciated by the double declining balance method over 10 years .
(a) What is the book value of the tractor at the end of 3 years?
(b) What is the relative rate of change of the book value of the tractor at the end of 3 years?
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