Posted by **Anonymous** on Thursday, December 29, 2011 at 7:36pm.

Brad bought $5,141 worth of office equipment. The government allows for office equipment to be depreciated at an annual rate of 5.5% per year. How long will it take for Brad to depreciate the equipment fifty-four percent?

- math -
**Damon**, Thursday, December 29, 2011 at 7:44pm
100 - 5.5 = 94.5 so

present value = original value * .945^n

100 - 54 = 46

so final value = original value * .46

so

original value *.46 = original value * .945^n

or

.945^n = .46

n log .945 = log .46

n = log.46/log.945 = 13.7 years

- math -
**Damon**, Thursday, December 29, 2011 at 7:48pm
My answer assumes depreciation per year is based on current depreciated value. If instead it is "straight line" or a constant amount per year then

.055 * original value = amount per year

.055 n = .54

n = 9.82

You problem does not specify which type of depreciation is intended.

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