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

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Question 92856This question is from textbook Finite mathematics
: An item costs $900, has a scrap value of $50, and useful life of five years. The linear equation relating book value and number of years is. This question is from textbook Finite mathematics

Answer by psbhowmick(878) About Me  (Show Source):
You can put this solution on YOUR website!
This is same as the equation of a straight line passing through (0, 900) and (5, 50).

So the equation is:
%28y+-+50%29%2F%28900+-+50%29+=+%28x+-+5%29%2F%280+-+5%29
%28y+-+50%29%2F850+=+-%28x+-+5%29%2F5
y+-+50+=+-170%28x+-+5%29
y+=+-170x+%2B+850+%2B+50
y+=+-170x+%2B+900

Here x = time in years and y = cost in $.