Question

The value of a computer depreciate about 20% each year. How much would a new computer depreciate the first year if it cost $540

Answer 1

A new computer costing $540 would depreciate by 20% in the first year, which is calculated as $540 multiplied by 0.20, resulting in a depreciation value of $108.

Step-by-step explanation:

The value of a computer depreciates by 20% each year. To find out how much a new computer that costs $540 would depreciate in the first year, we calculate 20% of $540.

Depreciation = Original Cost × Depreciation Rate

Depreciation = $540 × 0.20

Depreciation = $108

Therefore, a new computer costing $540 would depreciate by $108 in the first year.