The value of a property is $100,000.00 and it depreciates to a value of $30,000.00 after a period of 60 months. Assume a straight line depreciation model. What is the equation for the depreciation?

Answer 1

70000 loss in value/60 months = 7000/6 = 1166.66666667 per month. This is the rate or slope. It would be negative since it is a loss.

y = -1166.67(x) + 100,000

y is what it is worth

x is the number of elapsed months

100,000 is the original value, or the y intercept.