This is a question from my practice test I am trying to stud

This is a question from my practice test, I am trying to study for my test next week, so if you can explain how to get the answer without a calculaotr. I can not use one

5. A machine worth $5000 is to be linearly depreciated in a span of 50 years to a value of $1000. What will the machine be worth in 20 years?

Solution

Solution:

If machine is linearly depreciated in a span of 50 years

and then it has value 1000 form initial 5000 value

therefore rate of depreciation per year = r

rate r = (final value - Initial value ) / total span of time =(1000-5000) /50

= -80

=$ - 80 per year

Total worth of machine after 20 years =Initial value + rate of depreciation x time

= 5000 - 80* time (in year )

= 5000 -80 x20

= 5000- 1600

= $ 3600

Answer