SOLUTION: 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

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 4^th 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 4^th year

  4D = 4,000 - 200

  4D = 3,800

D, or annual depreciation  = , or $950

We now get the following equation:  

RELATED QUESTIONS

A small business buys a computer for $3300. After 4 years the value of the computer is... (answered by stanbon)
A small business buys a computer for $4900. After 4 years the value of the computer is... (answered by stanbon)
hello, I have a question on linear equation that models the following situation:

The... (answered by Earlsdon)
hello, I have a question on linear equation that models the following situation:

The... (answered by stanbon)
Zeus Industries bought a computer for $2681. It is expected to depreciate at a rate of... (answered by Cromlix)
Zeus Industries bought a computer for $2614. It is expected to depreciate at a rate of... (answered by reviewermath,t0hierry)
 Ryan buys a computer system for $3800. For tax purposes, he declares a linear... (answered by KMST)
Tim buys a new computer for $1200. After four years, he sells the computer to a friend... (answered by ankor@dixie-net.com)
Hi, the question i have is that a computer is purchased at end of 1999 for $3000.  Scrap... (answered by Hook)