Question

S.S. Dukes, a ferry operated by Terry’s Lake Transportation Company, has a current book value of $450,000. When the company purchased the ferry five years ago, it had an estimated life of 25 years, aftSer which it will be scrapped for $50,000. Build a linear model that describes the change in the ferry’s book value every year.

Answer 1

Do you know what a linear model means?

Answer 2

y=mx+b no?

Answer 3

Correct.
You are looking for a linear equation.

Answer 4

There are different ways of finding a linear equation.
You may be given:
2 points
a point and the slope
or other ways.

Reading the given information in the problem, can you come up with two points?
Each point will be (year, value)

Answer 5

(25,450,000) and (20,400,000) ?

Answer 6

No.
The way your first point reads, it means that the equipment is worth $450,000 in year 25.
The problem states that in year 25 the equipment is scrapped for $50,000.

This is how I think of it. Let the year represent when the equipment was bought.
It was bought 5 years ago.
5 years ago was year 0.
Now it's year 5.
The equipment now is worth $450,000.
That gives us the first point, (5, $450,000)

Ok?

Answer 7

mhm

Answer 8

For the second point, we are told the equipment will be worth $50,000 in year 25.
That means we have a second point:
(25, $50,000)

Answer 9

Now with two points, you can find the linear equation of the line that passes through these points.

Answer 10

oh! now i see where the points come from. and yes i can now make an equation thank you!

Answer 11

You're welcome.
When you find the equation, write it here.
I'll let you know if it's the same one I got.

Answer 12

y=20,000x+350,000