Straight-Line Depreciation. A company buys an office machine for $5200 on January 1 of a given year. The machine is expected to last for 8 years, at the end of which time its trade-in value, or salvage value, will be $1100. If the company's accountant figures the decline in value to be the same each year, then its book values, or salvage values, after t years, 0 ‰¤ t ‰¤ 8, form an arithmetic sequence given by

where C is the original cost of the item ($5200), N is the number of years of expected life (8), and S is the salvage value ($1100).
a) Find the formula for at for the straight-line depreciation of the office machine.
b) Find the salvage value after 0 year, 1 year, 2 years, 3 years, 4 years, 7 years, and 8 years.

Transcribed Image Text:

at = C-t