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.
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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.