Question 224579
a business purchaseda new van for $27,500. after 5 years it's depreciated vaule is $12,000. assuming a straight line depreciation write an equation of the line giving the value V of the van in terms of the age X of the van.


Age of van = X


Since in 5 years, the van depreciated to $12,000, then its annual depreciation amount is: $3,100 ({{{($27500 - 12000)/5}}}). 


Since its annual depreciation is $3,100, then it's losing $3,100 of its value every year


Therefore, BOOK value of van, in any given year is: {{{highlight_green(V = 27500 - 3100X)}}}