Question

What will be the computer system's book value at the end of the first year and a half?

Hint:

To find the book value at any time \( t \), use the depreciation equation \( V(t) = {Initial Cost} - {Depreciation Rate} \times t \).

Answer 1

Step 1: The book value is calculated using the linear equation: \[V(t) = 45200 - 15066.67t.\] Step 2: To find the book value at 1.5 years, substitute \( t = 1.5 \): \[V(1.5) = 45200 - 15066.67 \times 1.5.\] Step 3: Perform the calculation: \[V(1.5) = 45200 - 22600 = 22600.\] The book value after 1.5 years is ₹ 22,600.