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
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.
2 answers
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 =