SOLUTION: An item costs $900, has a scrap value of $50, and a useful life of five years. The linear equation relating book value and number of years is:

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Question 147634:
An item costs $900, has a scrap value of $50, and a useful life of five years. The linear equation relating book value and number of years is:

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
An item costs $900, has a scrap value of $50, and a useful life of five years. The linear equation relating book value and number of years is:
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You have two points: (0,900) and (5,50)
slope = (50-900)/(5-0) = -850/5 = -170
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intercept = 900
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EQUATION:
book value = -170x + 900 where x is the number of years from 0 to 5
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Cheers,
Stan H.