[MOVED] Find linear equation relating book value and years

harrissj1

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Nov 28, 2006
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4
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

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Jan 28, 2005
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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

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Nov 28, 2006
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Thank you!!

Thank you! May I ask you another question?
 

stapel

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Feb 4, 2004
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harrissj1 said:
Thank you! May I ask you another question?
Please post new questions as new threads.

Thank you.

Eliz.
 
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