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22 January, 09:26

A computer valued at $6500 depreciates at the rate of 14.3% per year. Find the value (round to the nearest dollar) of the computer after three years.

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  1. 22 January, 09:52
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    Given that,

    Value of a computer = $6500

    Depreciation rate = 14.3%

    Now, depreciation after 1st year = 6500 x 14.3%

    Depreciation after 1st year = 929.5

    Value of a computer after 1 year = 6500 - 929.5 = 5570.5

    Depreciation after 2nd year = 5570.5 x 14.3%

    Depreciation after 2nd year = 796.58

    Value of the computer after 2 year=5570.5-796.58=4773.92

    Depreciation after 3rd year = 4773.92 x 14.3%

    Depreciation after 3rd year = 682.67

    Value of the computer after 3 year = 4773.92-682.67 = 4091.25

    Therefore, the value of the computer after 3 year is $4091 approximately.
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