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?
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Definitions:

Short-Term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.

George Miller

A cognitive psychologist best known for his theory that the capacity of human memory is approximately seven items, plus or minus two.

State Capital

The city or town that functions as the administrative seat of government for a state.

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the use and understanding of language.