[MOVED] Find linear equation relating book value and years

[harrissj1]

BOOK VALUE

An item costs $900, has a scrap value of $50, and a useful life of five years. The linear equation relating book value and number of years is?

a. BV = -50x + 850

b. BV = -50x + 900

c. BV = -170x + 850

d. BV = -170x + 900

 

[soroban]

Re: FINITE MATHEMATICS

Hello, harrissj1!

An item costs $900, has a scrap value of $50, and a useful life of five years.
The linear equation relating book value and number of years is:

$\displaystyle \begin{array}{cc}(a)\:BV\,=\,-50x\,+\,850 & \;\;(b)\:BV\,=\,-50x\,+\,900 \\ \,(c)\:BV\,=\,-170x\,+\,850 & \;\;\;(d)\:BV\,=\,-170x\,+\,900\end{array}$

The item begins with a value of $900 and drops to $50 in five years.
Hence, it depreciates: $\displaystyle \,\frac{\$900\,-\,50}{5}\:=\:\$170$ per year.

The book value for year $\displaystyle x$ is: $\displaystyle \,-170x\,+\,900$ . . . answer (d)

 

[harrissj1]

Thank you!!

Thank you! May I ask you another question?

 

[stapel]

Thank you! May I ask you another question?

Please post new questions as new threads.

Thank you.

Eliz.