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depreciation model question?
A new laptop computer that sold for $1050 in 2005 has a book value V of $475 after 2 years.
(a) Find a linear depreciation model for the laptop.
(b) Find an exponential depreciation model for the laptop. Round the numbers in the model to four decimal places.
I don't know what formula to use or how to even start figuring this out. Any help would be appreciated.
I'm in college pre-calc actually
1 Answer
- 1 decade agoFavorite Answer
i assume this is an accounting or finance class. if it is a finance class, the closest method of depreciation that can be passed as linear is the straight line depreciation method. and for exponential you could use double declining or sum of the digits method. any question add some details. basically the answer to your question depends on which course you're taking so add some details.
