Question

A car is originally worth $43,500. It takes 12 years for this car to totally depreciate. Write the straight line depreciation equation that models this situation. (Include commas to express the number in thousands)A car is originally worth $43,500. It takes 12 years for this car to totally depreciate. Write the straight line depreciation equation that models this situation. (Include commas to express the number in thousands)

Answer 1

Value = $43,500 - 3,625x models the decreasing value of the car over 12 years until it reaches $0.

The straight-line depreciation equation can be expressed using;

Depreciation = Initial value - Final value/Number of years

Where,

Initial value = $43,500

Final value = 0 because it depreciates totally

Number of years = 12 years

So, Depreciation = 43,500 - 0/12

Depreciation = 43,500/12

Depreciation = 3625

The depreciation per year is $3,625.

To express the depreciation equation:

Value = Initial Value - (Depreciation per year * Number of years)

Value = 43,500 - (3,625 * x)

Value = $43,500 - 3,625x

So, this equation (Value = $43,500 - 3,625x) models the decreasing value of the car over 12 years until it reaches $0.