Question

Josephine purchases a computer for $4,590. The computer decreases in value at a constant rate for the 9 years, after which it is considered to not have any monetary value. How much is the computer worth 6 years after it is purchased?

Answer 1

Josephine's computer will be worth $1,530 after 6 years, calculated using the straight-line depreciation method based on the original cost and a 9-year depreciation period.

Step-by-step explanation:

To answer how much Josephine's computer is worth 6 years after it is purchased, we can calculate using straight-line depreciation. The computer, originally priced at $4,590, depreciates to $0 over 9 years. The annual depreciation expense is the total cost divided by the useful life ($4,590 / 9 years = $510 per year). After 6 years, the total depreciation is 6 years times $510 per year, which equals $3,060.

From the original cost ($4,590), after subtracting the total depreciation ($3,060), we find the computer's value 6 years after it is purchased:

$4,590 - $3,060 = $1,530.