Does anyone have any idea how to explain this please Solutio
Does anyone have any idea how to explain this please ?
Solution
Intial cost of computer = $ 3300 i.e. at t = 0 yrs
After 4yrs expected value is $200
a) We can model depreciation by straight line
Two points we have : ( 0, 3300) and ( 4, 200)
slope = (200 -3300)/(4 -0) = -775
So, V(t) = 3300 - 775*t
Second graph is for the equation
b) V interecpt shows the intial value of computer
c) Slope of graph shows rate of depreciation
d) Depreciated value after 3yrs
V(3) =3300 - 775*3 = $ 975
