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Question 285081: A printing machine has an original value of $100,000 and is to be depreciated linearly over 5 years with a $30,000 scrap value.
a) Find an expression giving the book value in terms of t (years)
b) Plot the equation in a rectangular coordinate system. Use time for the horizontal axis and Value of the machine for vertical axis.
c) What is the rate of depreciation of the machine?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A printing machine has an original value of $100,000 and is to be depreciated linearly over 5 years with a $30,000 scrap value.
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Note: You have two points relating time and value:
(0,100,000) and (5,30,000)
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a) Find an expression giving the book value in terms of t (years)
Slope = (30000-100,000)/(5-0) = -70,000/5 = -14000
intercept: 100,000
Equation: V(t) -14000t + 100,000
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b) Plot the equation in a rectangular coordinate system. Use time for the horizontal axis and Value of the machine for vertical axis.
Plot the two points and draw a line thru them in the 1st quadrant.
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c) What is the rate of depreciation of the machine?
Rate of depreciation = slope = -$14000 per year.
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Cheers,
Stan H.
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