Question

Manoj, the landscaper buyer intends to buy a new commercial grade lawn mower that costs $\$2,800$. He expects it to last about $8$ years, and then he can sell it for scrap metal with a salvage value of about $\$240$. Calculate it's approximate value after $x$ years $(x<8)$ assuming that it's value depreciates at a constant rate.

• A. $y=-320x+2,560$
• B. $y=-240x+2,800$
• C. $y=-320x+2,800$
• D. $y=240x-2,560$

Answer 1

The correct option is C $y=-320x+2,800$

The original price of the mower is 2800.$

The price after $8$ years would be 240.$

Since it is depreciating at a constant rate, the depreciating rate can be found out as $\frac{2800-240}{8}=350-30=320$

Now the equation can be written as $y=-320x+2800$, where $x$ is the number of years.

The negative sign comes since the price is depreciating.