A company buys an office machine for $5200 on January 1 of a given year. the machine is expected to last for eight years at the end of which time its trade in value or salvage value will be 1100$. if the company figures the decline in value to be the same each year than the book value or salvage value after T years ,0<t<8 is given by the linear function: v(t) =C-t (c-s/n)
Where c =the original cost of the item($5200), N=the number of years of expected life (8)& s=the salvage value ($1100)
A.) find the linear function for the straight line depreciation of the office machine
B.) find the salvage value after 0 years, 3years and 7 years.
My work: a.) v(t) =5200-t(5200-1100/8)
I don't think if this is correct which is why I cannot move on to part b so can someone please help??
shouldn't the function really be
v(t) =C-t ([c-s]/n) ?
Yes that is what I meant to type
So would I be correct?
v(t) =5200-t([5200-1100]/8)
im thinking so u r correct but how can u figure out b without v(t) and s:( im trying
imm thinking that slavage value increase same every year , so expected years are 8 and value is 1100
i.e, 1100/8 = 137.5
now
V(0)=5200
v(3)=5200-3([5200-412.5]/8)
=5200-3(598.4)
=5200-1795.2
=3404.8
im not sure just a thought
I thought in the equation we would plug in what we know and then solve for t?
we don't know 's' also right as it don't remain same for every 't'
the clue is given for 'S' increases same every year and we have to use it for the eqaution