The linear depreciation method assumes that an item depreciates the same amount each year. Suppose a new piece of machinery costs $22,500 and it depreciates $1,450 each year for t years. Find the value of the machinery after 8 years.
A) $11,600
B) $34,100
C) $10,900

Question

Quizplus · Accepted Answer

Since the machinery depreciates $1,450 each year for t years, we can create the linear equation y = 22,500 - 1,450t, where y represents the value of the machinery after t years.

To find the value after 8 years, we substitute t = 8 into the equation:

y = 22,500 - 1,450(8) = 10,900

Therefore, the value of the machinery after 8 years is $10,900. Hence, the best choice is C.

The Linear Depreciation Method Assumes That an Item Depreciates the Same