A copier was purchased by a company for $7,500. After 5 years it is estimated that the value of the copier will be $4,500. If the value in dollars V and the time the copier has been in use t are related by a linear equation, find the equation that relates V and t.

Question

A copier was purchased by a company for $7,500.  After 5 years it is estimated that the value of the copier will be $4,500.  If the value in dollars V and the time the copier has been in use t are related by a linear equation, find the equation that relates V and t.

anonymous · Answer

First, find out how much the copier depreciated per year. In this case,

(7500 - 4500) / 5
= 3000 / 5
= 600 per year

Use this as your coefficient for annual depreciation, where t represents time, in years, so that V is the current value.

V = 7500 - 600t

anonymous · Answer

V is the value of the copier in t years.