16Hit1600
AlgebraEasy–MediumStraight-line depreciation of a machine

Algebra practice question

The value of a machine decreases linearly from $9,000 when new to $3,000 after 5 years. What is the value of the machine, in dollars, 3 years after it was new?

Answer: 5400

It loses 6,000/5 = 1,200 per year, so after 3 years it is worth 9,000 − 3,600 = 5,400.

Common wrong answers

If you answered 3600
3600 is the amount lost, not the value left.
If you answered 5000
5000 is the value after one year with a $4,000 loss.
If you answered 6000
6000 is the value after 2.5 years.

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