Problem

A computer is depreciated using a flat rate depreciation method. It was purchased for $2800 and depreciates at the rate of 8%per annum. The amount of depreciation after 4 years is

Solution

Step 1 :A computer is depreciated using a flat rate depreciation method. It was purchased for $2800 and depreciates at the rate of 8% per annum. The amount of depreciation after 4 years is calculated as follows:

Step 2 :The flat rate depreciation method means that the asset depreciates by a fixed percentage each year. In this case, the computer depreciates by 8% each year.

Step 3 :To find the amount of depreciation after 4 years, we need to multiply the initial cost of the computer by the depreciation rate and then by the number of years.

Step 4 :Let's denote the initial cost as \(C\), the depreciation rate as \(r\), and the number of years as \(n\). Then the depreciation \(D\) can be calculated as \(D = C \times r \times n\).

Step 5 :Substituting the given values, we get \(D = 2800 \times 0.08 \times 4\).

Step 6 :Solving this, we get \(D = 896\).

Step 7 :Final Answer: The amount of depreciation after 4 years is $896. So, the final answer is \(\boxed{896}\).

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Source: https://solvelyapp.com/problems/33669/

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