Question

A piece of equipment was purchased by a company for $15,000 and Is assumed to have a salvage value of $5,000 in 5years. If it’s depreciated linearly from $15,000 to $5000

Find a linear equation in the form V = mt + b

Answer 1

`V=-2,000t+15,000`

Explanation:

Let

V ----> the value in dollars (y-coordinate)

t ----> the time in years (x-coordinate)

we have the ordered pairs

(0,15,000) and (5,5,000)

Find the slope

The formula to calculate the slope between two points is equal to

`m=(v2-v1)/(t2-t1)`

substitute

`m=(5,000-15,000)/(5-0)`

`m=(-10,000)/(5)`

`m=-\$2,000\ per\ year`

Find the equation of the line in slope intercept form

`V=mt+b`

where

`m=-2,000\\b=15,000`

substitute

`V=-2,000t+15,000`