Answer
a) $y = 875 - 175x$
b) y = $ 525
c) x= 3.8571 years
Work Step by Step
Current price of equipment is $875 and this price is going to decrease linearly and at the end of 5 years it will be zero. So, to decrease price of equipment linearly for 5 years we can divide current price by 5 i.e.
875/5 = 175
and subtract it from current price every year.
a)
So , the equation will be
y = 875 - 175*x
x is in years (0 to 5)
b)
For x = 2
y = 875 -175*2
y = 525
c)
Given: y = 200
200 = 875 -175*x
x= 3.8571 years
