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: Asset book value declines annually through depreciation. The book value \( V(t) \) after \( t \) years is calculated using the straight-line depreciation formula: \[V(t) = {Initial Cost} - {Depreciation Rate} \times t.\] Step 2: Inputting the provided figures: \[V(t) = 45200 - 15066.67t, \quad {for } 0 \leq t \leq 3.\]