Section 1.5: Linear Models
is an item owned that has value.
refers to the amount of decrease in the book value of an asset.
, also known as
, of an asset is the price paid for the asset when
of an asset is the remaining value after it is no longer seen as useable.
In 2010, the B&C Company installed a new machine in one of its factories at a cost of
$150,000. The machine is depreciated linearly over 15 years with no scrap value.
a. Find the rate of depreciation for this machine.
b. Find an expression for the machine’s book value in the t-th year of use (0 < t < 15).
A company’s car has an original value of $85, 000 and will be depreciated linearly over 6
years with scrap value of $10,000.
a. Find the expression giving the book value of the car at the end of year t (0 < t < 6).
b. Find the car’s book value in at the end of the third year.