Question

A heat exchanger is bought by a company for $180,000. It is considered to depreciate over 10 years to a scrap value of $10,000. Assuming a linear model for depreciation, write the equation of its value, V (in dollars), when t years have elapsed after the purchase (t < or equal 10)
treat the given data as two ordered pairs
(0,180000), (10,10000) , where the first element is the time, and the 2nd is the value

slope = (10000 - 180000)/(10-0)
= -17000 , interpret that as depreciating $17000 each year

equation:
V = -17000t + 180000

(0,180000) would be like the y-intercept of y = mx+b

Related Questions

A company that bought a machine for $30,000 wants to depreciate its entire value equally over the ne... A stereo is bought for $1500 and sold 4 years later for $800. a) Find the depreciation equati... A workcenter system purchased at a cost of $60,000 in 2015 has a scrap value of $12,000 at the end o... EZ Bhd bought a plant for RM 225,000 on the 1st of January 2000. EZ Bhd’s depreciation policy is to...