Question

Your new computer cost 1500 but it depreciates in value by about 18% each year. How much will your computer be worth in 6 years

Answer 1

To solve the problem of calculating the depreciation of the computer's value over 6 years at an annual depreciation rate of 18%, we will use the formula for compound depreciation:

depreciated_value = initial_cost * ((1 - depreciation_rate) ** years)

Here's how to calculate it step by step:

1. **Initial Cost**: The initial cost of the computer is $1500.

2. **Depreciation Rate**: The annual depreciation rate is 18%, which must be expressed as a decimal to be used in calculations. Thus, it is 0.18.

3. **Years**: The time period over which we are calculating the depreciation is 6 years.

Now, plug these values into the formula:

depreciated_value = 1500 * ((1 - 0.18) ** 6)

First, calculate the amount for 1 minus the depreciation rate:

1 - 0.18 = 0.82

Next, raise this value to the power of 6, because we're calculating the depreciation over 6 years:

0.82 ** 6 ≈ 0.319

Finally, multiply the initial cost by this depreciated value to find the value after 6 years:

depreciated_value ≈ 1500 * 0.319

Now, calculate the final value:

depreciated_value ≈ 478.5

So the estimated value of the computer after 6 years is approximately $478.50.

Answer 2

100 is your answer

Explained solution: you have to subtract 1500-18% 6 times