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Finding the Slope and Intercept in Linear Equations

1. A server purchased at a cost of $55,000 in 2002 has a scrap value of $10,000 at the end of 5 years. If the straight-line method of depreciation is used. (Please show work)
a) Find the rate of depreciation. Include your units.
b) Find the linear equation expressing the server's book value at the end of t years. Use proper function notation.
c) Interpret the slope in terms of this problem.

2. Sales figures show that your company sold 1960 greeting cards per week when the price was $1.49/greeting card, and 1800 greeting cards when the price was $1.79/greeting card.
a) Determine the linear demand function.
b) Interpret the slope in terms of this problem.

3. Producers will make 2000 refrigerators available when the unit price is $330.00. At a unit price of $390.00, 6000 refrigerators will be marketed. Find the equation relating the unit price of a refrigerator to the quantity supplied if the equation is known to be linear
a.)How many refrigerators will be marketed when the unit price is $450.00

Solution Preview

Solution:
1. A server purchased at a cost of $55,000 in 2002 has a scrap value of $10,000 at the end of 5 years. If the straight-line method of depreciation is used. (Please show work)
a) Find the rate of depreciation. Include your units.
Purchase cost=$55,000
Scrap Value=$10000
Useful life=5 years
Rate of depreciation=(55000-10000)/5=$9000 per year

b) Find the linear equation expressing the server's book value at the end of t years. Use proper function notation.
Let the book value of server be y, server's book value at the end of year t is given ...

Solution Summary

The solution to aforementioned problems depict the methodology to find the value of slop and intercept terms in the given cases with formulas and workings shown.

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