Question

The dollar value of a computer, based on the number of years since it was purchased, can be determined using the equation below. In the equation, which of the following represents the initial cost of the computer?

a) C
b) t
c) k
d) P

Answer 1

In the context of depreciation equations, 'P' commonly represents the initial cost of an asset. Therefore, the variable that stands for the initial cost of the computer is likely 'P'. This understanding is foundational for financial and economic calculations involving assets. Option d is the correct answer.

Step-by-step explanation:

The question is asking to identify the variable that represents the initial cost of the computer in a given depreciation equation. In such equations, the symbol that usually denotes the initial cost, or present value, of an item is 'P'. This is because 'P' typically stands for the principal amount, which in the context of depreciation, is the original value of the asset before any depreciation has occurred.

Without the actual equation provided, it can be difficult to be definitive, but based on standard depreciation models, such as straight-line depreciation, 'P' is most likely the correct variable. Therefore, the answer to the question would be d) P, which represents the initial cost of the computer.

Understanding this concept is essential in mathematical finance, economics, and accounting as it provides a basic foundation for various calculations involving asset value over time.