Question

suppose a business purchases equipment for $17,000 and depreciates it over 5 years with the straight - line method until it reaches its salvage value of $2000 (see the figure below). assuming that the depreciation can be for any part of a year, answer the questions to the right.
(a) write an equation that represents the depreciated value v as a function of the years t.
v = (do not factor.)

Explanation:

Step1: Find total depreciation amount

$\text{Total Depreciation} = 17000 - 2000 = 15000$

Step2: Calculate annual depreciation

$\text{Annual Depreciation} = \frac{15000}{5} = 3000$

Step3: Formulate value function

The initial value is $17,000, and value decreases by $3000 per year.
$V = 17000 - 3000t$

Answer:

$V = 17000 - 3000t$