Question

Paul purchased a used vehicle that depreciates under a straight-line method.
The initial value of the car is $5000, and the salvage value is $500. If the car
is expected to have a useful life of another 5 years, how much will it
depreciate each year?
O A. $5000
O B. $900
O C. $500
O D. $1000

Answer 1

Answer:

Option B. $900

Step-by-step explanation:

Let

y ----> the value of the car

x ----> the time in years

we know that

The linear function in slope intercept form is equal to

$y=mx+b$

where

m is the slope or the depreciation rate

b is the y-intercept or initial value of the car

we have

The y-intercept or initial value is equal to

$b=\ 5,000$

$y=mx+5,000$

we have the ordered pair (5,500)

substitute the value of x and the value of y of the ordered pair in the linear equation and solve for m

$500=m(5)+5,000$

$5m=500-5,000\\5m=-4,500\\m=-\ 900\ per\ year$

Is negative because is a decreasing function

The linear equation is equal to

$y=-900x+5,000$

therefore

It would depreciate $900 each year.

Answer 2

Answer: B $900

Step-by-step explanation:

confirmed