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A machine's value is (V(y)=c-2500y). If (V(4)=38000), what will (V(10)) be?

Answer and explanation

Correct answer: 23000

The machine’s value decreases by 2500 each year. From year 4 to year 10, there are 6 years, so the total decrease is \(6\times2500=15000\). Therefore, \(V(10)=38000-15000=23000\). Option 28000 results from subtracting the depreciation for only 4 years, so it is incorrect. Exam tip: In linear decay, first find the difference between the two time values and multiply it by the yearly decrease.

Related tags

Linear DecayDepreciationLinear PolynomialValue FunctionAlgebraLinear Growth And DecayIntroduction To PolynomialsMathematics

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