What will the net value of Sammys $250 domain name be in three years if the domain is valid for nine years?
The net value of Sammy's $250 domain name in three years will be $175, as the domain will still have six years of validity remaining.
To determine the net value of Sammy's $250 domain name in three years, we need to consider the remaining validity period of the domain.
Since the domain is valid for a total of nine years, and three years have passed, there are six years remaining.
To calculate the net value, we need to consider the depreciation of the domain over time. Domain values can vary greatly, so let's assume a 25% depreciation rate per year as an example.
Starting with the initial value of $250, we can calculate the net value for each year:
Year 1: $250 - (25% of $250)
Year 2: Year 1 value - (25% of Year 1 value)
Year 3: Year 2 value - (25% of Year 2 value)
To calculate these values step-by-step:
Year 1: $250 - (0.25 * $250) = $250 - $62.50 = $187.50
Year 2: $187.50 - (0.25 * $187.50) = $187.50 - $46.88 = $140.62
Year 3: $140.62 - (0.25 * $140.62) = $140.62 - $35.16 = $105.46
Therefore, the net value of Sammy's $250 domain name in three years will be approximately $105.46.
To calculate the net value of Sammy's $250 domain name in three years, we need to consider the remaining years of validity.
Step 1: Determine the number of years the domain name will be valid for after three years.
Since the domain is valid for nine years, and we are calculating the value after three years, the remaining years of validity will be 9 - 3 = 6 years.
Step 2: Calculate the yearly depreciation rate of the domain name.
To determine the depreciation rate, we divide the original price ($250) by the total years of validity (9). Thus, the yearly depreciation rate is 250 / 9 = $27.78 per year.
Step 3: Calculate the net value after three years.
Multiply the yearly depreciation rate by the remaining years of validity (6) to find the accumulated depreciation: 27.78 * 6 = $166.67
Finally, subtract the accumulated depreciation from the original price to find the net value: 250 - 166.67 = $83.33
Therefore, the net value of Sammy's $250 domain name in three years will be $83.33.