The Pointless Pencil Company purchases a new stamping machine for the production line that cost $8000. The equipment will be replaced in 10 years at which time its salvage value is expected to be $1000.
Write a linear equation giving the value, y, of the machine during the first ten years.
What is the value of the machine after 6 years?
So far for the first part, I have: y=-$1000x-$8000
The second part, it obviously is $6000. But how do I use/show how it's done?
Thank you!
since the value starts at $8000 and decreases by 7000 in 10 years ($700/year), the equation for the value is
y = 8000 - 700x
at x=6,
y = 8000 - 4200 = 3800