algebra word problem

Question

A machine was bought for $15,000. After two years the machine was worth $12,000. If the depreciation of the machine is a linear relationship, when will the machine be worthless?

Answer 1

A machine was bought for $15,000. After two years the machine was worth $12,000. If the depreciation of the machine is a linear relationship, when will the machine be worthless?

 

Original Cost = $15000

Cost after 2 years = $12000

 

Avg Depreciation per year

= ($15000-$12000)/2 years

= $3000/2years

= $1500/year

 

How many Years

= $15,000/($1500/year)

= 10 years