A steep system is bought for $1200 and sold eight years later for $400

Question

Find Deprecation equation 

Answer 1

You have two points:  (0, 1200), (8, 400)

x = year/age

y = value

 

Slope:  m = (400-1200)/8 = -800/8 = -100

Thus we see the value depreciates at the rate of $100 per year

 

y = -100x + 1200