Daniel's print shop purchased a ner printer for $35000. Each year it depreciates (loses value) at a rate of 5%. what will its approximate value be at the end of the fourth year?
35,000*(0.95)^4 = $28,508.
(Numbers used in computing taxes and depreciation are customarily rounded to the nearest dollar).
thanks
To calculate the approximate value of the printer at the end of the fourth year, we need to calculate the depreciation for each year and subtract it from the original cost.
Year 1 depreciation = 5% of $35,000 = 0.05 * $35,000 = $1,750
Value at the end of year 1 = $35,000 - $1,750 = $33,250
Year 2 depreciation = 5% of $33,250 = 0.05 * $33,250 = $1,662.50
Value at the end of year 2 = $33,250 - $1,662.50 = $31,587.50
Year 3 depreciation = 5% of $31,587.50 = 0.05 * $31,587.50 = $1,579.38
Value at the end of year 3 = $31,587.50 - $1,579.38 = $30,008.12
Year 4 depreciation = 5% of $30,008.12 = 0.05 * $30,008.12 = $1,500.41
Value at the end of year 4 = $30,008.12 - $1,500.41 = $28,507.71
Therefore, the approximate value of the printer at the end of the fourth year will be approximately $28,507.71.
To calculate the approximate value of the printer at the end of the fourth year, we need to apply the depreciation rate of 5% for each year.
First, let's calculate the depreciation amount for each year:
Depreciation (Year 1) = 5% of $35,000
= 5/100 * $35,000
= $1,750
Value at the end of Year 1 = $35,000 - $1,750
= $33,250
Depreciation (Year 2) = 5% of $33,250
= 5/100 * $33,250
= $1,662.50
Value at the end of Year 2 = $33,250 - $1,662.50
= $31,587.50
Depreciation (Year 3) = 5% of $31,587.50
= 5/100 * $31,587.50
= $1,579.38
Value at the end of Year 3 = $31,587.50 - $1,579.38
= $30,008.12
Depreciation (Year 4) = 5% of $30,008.12
= 5/100 * $30,008.12
= $1,500.40
Value at the end of Year 4 = $30,008.12 - $1,500.40
= $28,507.72
Therefore, the approximate value of the printer at the end of the fourth year will be approximately $28,507.72.