A certain computer loses half of its value every two years
Suppose the initial value of the computer = $100
12.5% of its initial value = 12.5% * 100 = 0.125 * 100 = $12.5
Now we need to find in which year the value of the computer becomes $12.5
Initial value = $100
Computer loses half of its value every two years
After two years (second year )the value of computer = 100 divide by 2 = $50
After two years (fourth year )the value of computer = 50 divide by 2 = $25
After two years (sixth year )the value of computer = 25 divide by 2 = $12.5
So, after 6 years the computer be worth 12.5% of its initial value.