A Business Purchasing an Item for Business Purposes May Use

question 30

Multiple Choice

A business purchasing an item for business purposes may use straight-line depreciation to obtain a tax deduction. The formula for the present value, P, after t years is given below, where C is the cost and s is the scrap value after L years. The number L is called the useful life of the item. ​ ​
If a certain piece of equipment costs $6,100 and has a scrap value of $2,300 after 5 years, graph the amount you will have in t years. What is the slope of the graph?
​

---

Definitions:

10th Grade

A stage in the U.S. education system typically referring to the second year of high school education, attended by students around 15-16 years old.

Grouped Frequency Distribution

A method of displaying data by specifying the number of occurrences in each group of data.

Intervals

Continuous ranges of values or categories between two points, often used to specify confidence levels in statistics or musical distances in music.

Equal Size

Describes groups or samples having the same quantity or measure.