A business uses straight-line depreciation to determine the value y of an automo
ID: 2902045 • Letter: A
Question
A business uses straight-line depreciation to determine the value y of an automobile over an 8-year period. Suppose the original value (when t = 0) is equal to $18,400 and the salvage value (when t = 8) is equal to $4000. By how much has the automobile depreciated over the 8 years? By how much is the value of the automobile reduced at the end of each of the 8 years? Write the linear equation that models the value s of this automobile at the end of year t. The automobile has depreciated $ over the 8 years. (Simplify your answer.)Explanation / Answer
The depreciation over 8 years = 18,400 - 4000 = 14,400
At the end of each year, the value of automobile has reduced by :
14,400 / 8 = 1,800 $
The equation =
y = 18,400 - 1800 t where t = time in years
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