Problema Solution
Suppose a new computer costs $12,000 and is expected to depreciate linearly to a value of $2,000 over the next 8 years. Write an equation giving the value V of the computer t years after purchase.
Answer provided by our tutors
When it was bought new, the time was t = 0 years and the value was $12,000.
After t = 8 years and the value is $2000.
This amounts to finding the equation of a line that passes through the two points (0, 12,000) and (8, 2000), where x represents the time and y represents the value of the computer.
m = (y2 - y1)/(x2 - x1)
where (x1, y1) = (0,12000) and (x2,y2) = (8,2000)
m = (2000 - 12000)/(8 - 0)
m = - 1250
Now we use the point-slope formula:
y - y1 = m(x - x1)
y - 12,000 = - 1250 (x - 0)
y = 12,000 - 1250x
12,000 - 1250x >=0 since the value can not be negative
x <= 9.6
We now change y to V for value, and x to t for time
V = 12000 - 1250t where 0 <= t <= 9.6
and this is the equation that gives the value V of the computer t years after purchase.