# [MOVED] Find linear equation relating book value and years

#### harrissj1

##### New member
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

##### Elite Member
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

##### New member
Thank you!!

Thank you! May I ask you another question?

#### stapel

##### Super Moderator
Staff member
harrissj1 said:
Thank you! May I ask you another question?