Asked by Kenny
A stereo is bought for $1500 and sold 4 years later for $800.
a) Find the depreciation equation.
b) Assuming the depreciation is linear, find the value of the stereo after the first five years of ownership.
a) Find the depreciation equation.
b) Assuming the depreciation is linear, find the value of the stereo after the first five years of ownership.
Answers
Answered by
Reiny
value = mt + 1500
when t = 4, value = 800
800 = 4m + 1500
4m = -700
m = -175
value = -175t + 1500
plug in t = 5 to find value
when t = 4, value = 800
800 = 4m + 1500
4m = -700
m = -175
value = -175t + 1500
plug in t = 5 to find value
Answered by
Henry
a. Vt = Vo - d*T*Vo.
Vt = Value after time t.
Vo = Initial value.
d = Depreciation rate per year expressed as a decimal.
1500 - 4d*1500 = 800, d = 0.117/yr.
b. V = 1500 - 0.117*5*1500 =
Vt = Value after time t.
Vo = Initial value.
d = Depreciation rate per year expressed as a decimal.
1500 - 4d*1500 = 800, d = 0.117/yr.
b. V = 1500 - 0.117*5*1500 =