The linear depreciation method assumes that an item depreciates the same amount each year. Suppose a new piece of machinery costs $32,000 and it depreciates $1,650 each year for t years. Set up a linear function that yields the value of the machinery after t years.
A) f ( t ) = 32,000 $-$ 1,650 t
B) f ( t ) = 1,650 t + 32,000
C) f ( t ) = 1,650 t $-$ 32,000

Question

Quizplus · Accepted Answer

The linear function that yields the value of the machinery after t years is given by:
f ( t ) = 32,000 - 1,650 t
This is because the machinery depreciates by $1,650 each year, so after t years, the total depreciation will be $1,650 times t. We subtract this from the original cost of $32,000 to get the value of the machinery after t years. Hence, the correct answer is choice A.

The Linear Depreciation Method Assumes That an Item Depreciates the Same