linear depreciation

Question

A small business buys a computer for $4000. after 4 years the value of the computer is expected to be $200. for accounting purposes the business uses linear depreciation to assess the value of the computer at a given time. this means that if V is the value of the computer at time t, then a linear equation is used to relate V and t. 1) find a linear equation that relates V and t. 2) sketch a graph of this linear equation. 3) what do the slope and V-intercept of the graph represent? 4) find the depreciated value of the computer 3 years from the date of purchase.

Answer 1

Hy Maren,

 

4000 - 4d = 200

 

4d = 3800

 

d = 950

 

so the value goes down by $950 an year 

 

V = 4000 - 950t

 

 

the graph would be straight line with a negative gradient .

 

the slope represents the amount by which it depreciates each year.

 

intercept when t = 0 is the initial value or original value of the computer.

 

Finally when t = 3

 

V = 4000 - 950(3)

 

= 4000 - 2850

 

= 1,150

 

The tv is worth 1,150 dollars after 3 years .

 

hope this helped

 

 Mayuran