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Question 995490: A small business buys a computer for $4000. After 4 years the value of the computer is expected to be $200. For accounting purposes the business uses linear depreciation to assess the value of the computer at a given time. This means that if V is the value of the computer at time t, then a linear equation is used to relate V and t.
(a) Find a linear equation that relates V (in dollars) and t (in yr).
(I keep getting confused on which comes first, v or t. Or how they relate to one another)
Answer by MathTherapy(10552) (Show Source):
You can put this solution on YOUR website! A small business buys a computer for $4000. After 4 years the value of the computer is expected to be $200. For accounting purposes the business uses linear depreciation to assess the value of the computer at a given time. This means that if V is the value of the computer at time t, then a linear equation is used to relate V and t.
(a) Find a linear equation that relates V (in dollars) and t (in yr).
(I keep getting confused on which comes first, v or t. Or how they relate to one another)
V(t) signifies the value of the computer at a certain point in time (years)
Since the value of the computer is $200 in the 4th year, we can determine the ANNUAL DEPRECIATION (D) by saying that:
V(t) = 4,000 - Dt
V(4) = 4,000 - D(4) ---- Substituting 4 for t, in years
200 = 4,000 - 4D ------ Substituting 200 for computer's value in the 4th year
4D = 4,000 - 200
4D = 3,800
D, or annual depreciation = , or $950
We now get the following equation:
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