Question

Give a linear equation that describes the computer system's book value at the end of \( t \)th year, where \( 0 \leq t \leq 3 \).

Hint:

The book value in the straight-line depreciation method is a linear function, given by \( V(t) = {Initial Cost} - {Depreciation Rate} \times t \).

Answer 1

Step 1: The book value of the asset decreases over time due to depreciation. The linear equation representing the book value \( V(t) \) at the end of \( t \)th year follows the straight-line method formula: \[ V(t) = {Initial Cost} - {Depreciation Rate} \times t. \] Step 2: Substitute the given values: \[ V(t) = 45200 - 15066.67t, \quad {where } 0 \leq t \leq 3. \]