Knowee
Questions
Features
Study Tools

A computer system bought by a business costs $3450.If the business can depreciate the computer by 50% the first year and then 40% of the remaining value the second year, how much is the computer worth at the end of two years?

Question

A computer system bought by a business costs $3450.If the business can depreciate the computer by 50% the first year and then 40% of the remaining value the second year, how much is the computer worth at the end of two years?

🧐 Not the exact question you are looking for?Go ask a question

Solution

Step 1: Calculate the depreciation for the first year. The computer depreciates by 50% in the first year, so you multiply the initial cost by 50%.

3450503450 * 50% = 1725

Step 2: Subtract the first year's depreciation from the initial cost to find the value of the computer after one year.

34503450 - 1725 = $1725

Step 3: Calculate the depreciation for the second year. The computer depreciates by 40% of its current value in the second year, so you multiply the current value by 40%.

1725401725 * 40% = 690

Step 4: Subtract the second year's depreciation from the current value to find the value of the computer after two years.

17251725 - 690 = $1035

So, the computer is worth $1035 at the end of two years.

This problem has been solved

Similar Questions

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

A laptop computer is purchased for $2300. Each year, its value is 80% of its value the year before. After how many years will the laptop computer be worth $800 or less?

A computer is depreciated using a flat rate depreciation method. It was purchased for $2800 and depreciates at the rate of 8% per annum. The amount of depreciation after 4 years is

A new car is purchased for $25,000. The value of the car depreciates by 10% in the first year and 10% in the next. What is the value of the car after two years?$19,500$19,750$20,000$20,250$20,500

A laptop computer is purchased for US$850. After each year, the resale value decreases by 35%. What will the resale value be after 3 years?Use the calculator provided and round your answer to the nearest dollar.

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.