Depreciation: The purchase value of an office computer is $12500. Its annual depreciation is &1875. Find the value of computer after 6 years.
Aritmetic Sequence
To find the value of the computer after 6 years, we need to calculate the total depreciation over those 6 years and subtract it from the purchase value.
Given:
Purchase value = $12500
Annual depreciation = $1875
To calculate the total depreciation over 6 years, we multiply the annual depreciation by the number of years:
Total depreciation = Annual depreciation x Number of years
Total depreciation = $1875 x 6 = $11250
To find the value of the computer after 6 years, we subtract the total depreciation from the purchase value:
Value of computer after 6 years = Purchase value - Total depreciation
Value of computer after 6 years = $12500 - $11250 = $1250
Therefore, the value of the computer after 6 years is $1250.
To find the value of the computer after 6 years, we need to use arithmetic sequence.
In an arithmetic sequence, the difference between consecutive terms (d) remains constant.
Let's break down the given information:
Initial value (a): $12500 (purchase value of the office computer)
Annual depreciation (d): $1875
To find the value of the computer after 6 years, we need to calculate the 6th term of the sequence.
The formula to find the value of the nth term (Vn) in an arithmetic sequence is:
Vn = a + (n - 1) * d
Substituting the given values:
V6 = $12500 + (6 - 1) * $1875
Simplifying:
V6 = $12500 + 5 * $1875
V6 = $12500 + $9375
V6 = $21875
Therefore, the value of the computer after 6 years would be $21875.