# math

posted by .

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 -

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 -

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.

## Similar Questions

Use the straight line amortization method. Equipment amortizes 20 percent per year. Trial Balance for March 31, 2005 shows equipment worth \$90,030.
2. ### Accounting

How would I record this on the "Journal Entry" and at what amount?
3. ### algebra

suppose you are starting an office-clening service. You have spent \$315 on equipment.To clean an office, you use \$4 worth of supplies.Yoou charge \$25 per office. How many offices must you clean to break even?
4. ### math

suppose you are starting an office-clening service. You have spent \$315 on equipment.To clean an office, you use \$4 worth of supplies.Yoou charge \$25 per office. How many offices must you clean to break even?
5. ### education

Children will generally select equipment based on: a.their prior success with the equipment. B.the size of the equipment c.the brightness and boldness of the equipment's colors d. The opportunity for challenge presented by the equipment. …
6. ### accounting

Jackson Company invests in a new piece of equipment costing \$40,000. The equipment is expected to yield the following amounts per year for the equipment's four-year useful life: Cash revenues \$ 60,000 Cash expenses (32,000) Depreciation …
7. ### accounting

James, Inc. discovered that equipment purchased three years ago for \$600,000 will not last as long as originally estimated. The firm was depreciating the equipment at the rate of \$80,000 per year with an estimated salvage value of …
8. ### accounting

Analyze and record, in the form of T Accounts, Mr. James' transactions: Jan 1: Amount invested in the business \$10,000 Jan 7: Bought equipment for \$500 Jan 9: Bought office furniture with \$2,000 cash Jan 10: Bought materials with \$2,000 …
9. ### planning & implementing for the environment

Which one of the following criteria is most important for determining whether a piece of equipment is chosen?
10. ### finacial managment

Assignment Exercise: Inventory and Depreciation Concepts Assume that an organization purchased two pieces of equipment on April 1st (the first day of its fiscal year), as follows: (1) One laboratory equipment that cost \$530,000 and …

More Similar Questions