Answer:
We can apply the straight-line method to solve for the value of the computer every year.
Step-by-step explanation:
Step one:
What is depreciation?
It can be defined as the loss of value of a commodity.
In this problem, the percent depreciation is given as 20% which means that 20% of the worth of the computer is lost every year.
We are told that the computer cost is $1000
let the number of years taken for the computer to depreciate be x
Step two:
Say we want to find the value of the computer after 1 year, the value of the computer will be
Value of computer= 1000-20/100*1000
Value of computer= 1000-0.2*1000
Value of computer= 1000-200
Value of computer= $800
Step three:
For the second year, the value will be
Value of computer= 800-20/100*800
Value of computer= 800-0.2*800
Value of computer= 800-160
Value of computer= $640
