Answer: It lost $6.75 in the first year.
Step-by-step explanation: Using the graph, first determine the function of loss in value and years, by calculating:
Slope: m = [tex]\frac{y_{a}-y_{b}}{x_{a}-x_{b}}[/tex] and then, substitute in: [tex]y-y_{0}=m(x-x_{0})[/tex]
The equation is:
[tex]y-y_{0}=(\frac{y_{a}-y_{b}}{x_{a}-x_{b}} )(x-x_{0})[/tex]
Assuming y is value and x is years.
From the graph, in year 0, loss is 10 and in year 4, loss is 7, i.e.:
[tex]y-10=(\frac{7-10}{4-0} )(x-0)[/tex]
[tex]y=\frac{-3}{4}x+10[/tex]
For the first year, loss in value will be:
[tex]y=\frac{-3}{4}.1+10[/tex]
y = 6.75
During the first year, the loss in value is $6.75
