SOLUTION: A piece of equipment used in a landfill has an original value of $200,000. After two years of use, the piece of equipment is valued at $150,000. a) If the depreciation of the e

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Question 1203412: A piece of equipment used in a landfill has an original value of $200,000. After two
years of use, the piece of equipment is valued at $150,000.
a) If the depreciation of the equipment is assumed to be linear, find an equation to
relate the value (V) of the equipment over time (t).
b) What would the value of the piece of equipment be after 6 years?
c) In how many years would the value of the piece of equipment be $0?
Answer by ikleyn(52802) About Me  (Show Source):
You can put this solution on YOUR website!
.

(a) It loses $50,000 in two years - so, due to linearity, it loses 50000/2 = 25000 dollars per year.


    So, the formula for the value is  V = 200000 - 25000*t,
    where t represents the years.


(b) After 6 (six) years, the value is  V = 200000 - 25000*6 = 20000 - 150000 = 50000 dollars.


(c) The value be 0, when

        20000-25000*t = 0,


    which gives

        t = 200000/25000 = 8 years.

Solved.