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The purchase value of an office computer is $13,000. Its annual depreciation is $1770. Find the value of the computer after 5 years.$

Question

The purchase value of an office computer is 13,000.Itsannualdepreciationis13,000. Its annual depreciation is 1770. Find the value of the computer after 5 years.$

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Solution

To find the value of the computer after 5 years, you need to subtract the total depreciation over those 5 years from the initial purchase value.

Step 1: Calculate the total depreciation over 5 years. The annual depreciation is 1770,soover5years,thetotaldepreciationwouldbe17705=1770, so over 5 years, the total depreciation would be 1770 * 5 = 8850.

Step 2: Subtract the total depreciation from the initial purchase value. The initial purchase value is 13,000,soaftersubtractingthedepreciation,thevalueofthecomputerafter5yearswouldbe130008850=13,000, so after subtracting the depreciation, the value of the computer after 5 years would be 13000 - 8850 = 4150.

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