Question

Zeus Industries bought a computer for $2011. It is expected to depreciate at a rate of 24% per year. What will the value of the computer be in 5 years?

Answer 1

The value of the computer after five years will be as follows;
Value after 1 year:
24/100*2011
=$482.64
2011-482.64
=$1528.36
or
76/100*2011
=$1528.26

Value after 2nd year:
76/100*1528.36
=$1,161.55

Value after 3rd year:
76/100*1,161.55
=$882.78

Value after 4th year:
76/100*882.78
=$670.91

Value after 5th year:
76/100*670.91
=$509.89
hence the value after five years will be: $509.90