Question

Angela bought a computer for $3,100. It depreciated 24% of its original cost in the first year. In the second year, it depreciated 14% of its remaining value. What is the value of the computer at the end of the second year? Round your answer to the nearest cent.

Answer 1

3100((100-24)/100)((100-14)/100)

3100(76/100)(86/100)

20261600/10000

$2026.16

Answer 2

The value of the computer at the end of the second year = $2026.13

Explanation:

Original Cost price of computer = $3100

Percentage of depreciation in its original cost = 24%

So, Original Cost after one year = 3100 - 24% of 3100

= $2356

Again, after 2 year the depreciation percentage is given as 14%

Amount of money depreciated at the end of two month = 2356 - 14% of 2356

⇒ 2356 - 329.84

⇒ $2026.16

Therefore, The value of the computer at the end of the second year = $2026.13