What is the slope of the following graph?
1 answer:
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Answer: 5.4
Step-by-step explanation:
Option B:
$1300
Solution:
Given initial value = $7000, salvage value = %500, time = 5 years
Let the value of the vehicle be described by the equation
V = a + bx – – – – – (1)
where x = number of years since purchase, a and b are constants.
When x = 0, V = $7000
a + b × 0 = 7000
⇒ a + 0 =7000
⇒ a = 7000
When x = 5, V = $500. Therefore
7000 + 5b = 500
5b = 500 – 7000
5b = –6500
The equation is
V = 7000 – 1300x
The slope of this equation is the depreciation rate.
Here slope is 1300.
Option B is the correct answer.
Hence $1300 depreciation per year.