A computer valued at $1850 depreciates at a rate of 14.5% per year. What is the value of the computer after 3 years?

Question

a)$1989.79

b)$1156.30

c)$1621.64

d)$1200.00

Answer 1

eliminate a as depreciation means you get a lower value. a is higher

b or d.

b looks closer after a rough estimate, although it's close

go with b: $1156.30

(plus that even number looks suspicious with d, 14.5% depreciation shouldn't come out that evenly)