Question

If Cleo bought a computer for $1,495 and it depreciates for 3 years at a rate of 16% per year, what will it be worth after depreciation?

a) $551.34
b) $1278.45
c) $375.46
d) $2000.00

Answer 1

The computer will be worth $777.40 after depreciation.

Step-by-step explanation:

To find the value of the computer after depreciation, we need to calculate the depreciation amount for each year and subtract it from the original price. The depreciation amount for each year can be found by multiplying the original price by the depreciation rate. In this case, the depreciation rate is 16%, so:

First year depreciation: $1,495 x 0.16 = $239.20

Second year depreciation: $1,495 x 0.16 = $239.20

Third year depreciation: $1,495 x 0.16 = $239.20

Subtracting the total depreciation amount from the original price:

$1,495 - ($239.20 + $239.20 + $239.20) = $1,495 - $717.60 = $777.40

Therefore, the computer will be worth $777.40 after depreciation.