I need to create a linear scenario and problem. It must have at least two parts to my problem for my classmates to solve. And I have to know the answer to my own question! I'm totally lost! Please help!
Here’s an example below.
Newlyweds just bought a new house to start a family. The original cost of the house is $450,00. The house is depreciated linearly over 10 years, and then have a scrap value of $325,000. Explain the process to write a formula that expresses the house value (v), with reference to age (t) in years. What will be the house value going to be in 5 years? Explain, at what point is the formula useless?
| Cost of house | $ 450,000 | |
| Less: | Salvage value | $ 325,000 |
| Depreciable cost | $ 125,000 | |
| Divided by: | Useful life | $ 10 |
| Annual Depreciation | $ 12,500 | |
| Explain the process to write a formula that expresses the house value (v), with reference to age (t) in years. | ||
| House value = 450000 - 12500*Years | ||
| v = 450000 - 12500*t | ||
| What will be the house value going to be in 5 years? | ||
| v = 450000 - 12500*t | ||
| v = 450000 - 12500*5 | ||
| v = 450000 - 62500 | ||
| v = 387500 | ||
| at what point is the formula useless? | ||
| The house is depreciated linearly over 10 years, Thus, After 10 years is the formula useless. | ||
I need to create a linear scenario and problem. It must have at least two parts...
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