00:03
So in straight line depreciation, why is the slope considered the rate of depreciation? well, consider depreciation in it of itself.
00:14
Recall that depreciation is the money or the value, the money or value lost over the years, or the year rather, because we have an annual rate of depreciation.
00:42
Consider slope.
00:44
This is the rate of depreciation.
00:46
This number in slope intercept form would be the rate of depreciation.
00:50
And that's the slope.
00:51
Now consider the slope formula.
00:53
It's the change in y over the change in x.
01:01
So let's say that you are given the knowledge that after zero years, of use, the value is $100.
01:21
And after one year, it's 90.
01:30
As you can see here, this, this 0 ,1, the years would end up being your x coordinate, while the value would end up being your y coordinate.
01:41
Now, you can already see this coming together...