To determine the worth of the copy machine in 10 years, we can first find the depreciation rate by looking at its value over the first 5 years.
We know:
- Initial value at year 0 (V0): $10,500
- Value after 5 years (V5): $5,500
To find the annual depreciation, we can use the formula for depreciation:
\[ \text{Depreciation per year} = \frac{\text{Initial value} - \text{Value after 5 years}}{\text{Number of years}} \]
Substituting the values in:
\[ \text{Depreciation per year} = \frac{10,500 - 5,500}{5} = \frac{5,000}{5} = 1,000 \]
The copy machine depreciates by $1,000 each year.
Now, we can calculate the value of the machine in 10 years:
\[ \text{Value at year 10} = \text{Initial value} - (\text{Depreciation per year} \times \text{Number of years}) \]
Substituting the data:
\[ \text{Value at year 10} = 10,500 - (1,000 \times 10) = 10,500 - 10,000 = 500 \]
Thus, the machine will be worth $500 in 10 years.