Write a pseudo code for the problem

Question

There a number of methods that are used for calculating the depreciation of an asset. One commonly used method is the sum-of-the-years-digits. For example, consider an equipment of value 15 million cedis required to be depreciated over 5 years period. We first calculate the sum of the years digits by adding 1,2,3,4, and 5. Thus the sum-of-the-years-digits is 15. For the first year the amount of depreciation is (5/10)*15 million (i.e. 5 million), the second year will be(4/15)*15 million (i.e. 4 million), the third year will be (3/15)*15 million (i.e. 3 million) and so forth. You are to devise a computer solution to accept the value of an asset and the number of years of depreciation as inputs and outputs the year, the amount of depreciation starting with year 1 up to the year required and the balance outstanding at the end of each year under appropriate headings.

Answer 1

BEGIN

// Step 1: Input the asset value and the number of years for depreciation

PRINT "Enter the value of the asset:"

INPUT asset_value

PRINT "Enter the number of years for depreciation:"

INPUT years_of_depreciation

// Step 2: Calculate the sum of the year's digits

sum_of_years_digits = 0

FOR year FROM 1 TO years_of_depreciation DO

sum_of_years_digits = sum_of_years_digits + year

END FOR

// Step 3: Initialize variables for depreciation calculations

balance = asset_value

// Step 4: Output headings

PRINT "Year | Depreciation Amount | Balance Outstanding"

PRINT "---------------------------------------------"

// Step 5: Calculate and output depreciation for each year

FOR year FROM 1 TO years_of_depreciation DO

// Calculate the depreciation for the current year

depreciation_amount = ((years_of_depreciation - (year - 1)) / sum_of_years_digits) * asset_value

// Update the balance outstanding

balance = balance - depreciation_amount

// Step 6: Output the year, depreciation amount, and balance

PRINT year, "|", depreciation_amount, "|", balance

END FOR

END