Problema Solution
You buy a new car for $45,000 and the car depreciates in value at a linear rate of $5000 per year.Find the x and y intercepts and what do the coordinates of x and y mean?
Answer provided by our tutors
Let
x = the number of years passed
y = the value of the car after x years
y = 45,000 - 5000x
y intercept happens when x = 0:
y = $45,000
The y intercept represents the value of the new car.
x intercept happens when y = 0 that is:
45,000 - 5,000x = 0
x = 45,000/5,000
x = 9 years
After 9 years the value of the car will be $0.