For tax purposes, you may have to report the value of your assets, such as cars or refrigerators. The value you report drops with time. Straight-line depreciation'' assumes that the value is a linear function of time. If a $800 refrigerator depreciates completely in 7 years, find a formula for its value as a function of time, x, in years.

Sagot :

The value of the refrigerator after x years is given by the formula

y   =  -114.29x  +   800

Let the original value of the asset be y₁

The original value of the refrigerator = $800

That is, at x₁ = 0,  y₁  =  800

The refrigerator depreciates completely in 7 years. This means it has no value at the end of 7 years

Let the final value of the asset be y₂

The final value of the refrigerator at the end of 7 years = $0 (Since it depreciated completely)

That is, at x₂  = 7,  y₂  =  0

The straight line depreciation formula is given as:

y - y₁  =  m(x  -  x₁)

where m is the slope and is calculated as:

[tex]m = \frac{y_2-y_1}{x_2-x_1} \\m = \frac{0-800}{7-0} \\m = \frac{-800}{7} \\m = -114.29[/tex]

Substitute x₁ = 0,  y₁  =  800, and m = -114.29 into the equation:

y - y₁  =  m(x  -  x₁)

y  -  800  =  -114.29(x  -  0)

y  -  800  =  -114.29x

y   =  -114.29x  +   800

The value of the refrigerator after x years is given by the formula

y   =  -114.29x  +   800

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