A computer system was purchased on 1st July for 5000 the depreciation rate is 12.5% p.a. using the straight line method there is no residual value 

In this scenario, you are dealing with depreciation of a computer system using the straight-line method, with the following information:

- **Initial value of the asset (computer system)** = \$5000
- **Depreciation rate per annum** = 12.5%
- **Residual value** = \$0 (since there is no residual value)

### Formula for Straight-Line Depreciation:

\[
\text{Annual Depreciation} = \frac{\text{Initial Value} - \text{Residual Value}}{\text{Useful Life of the Asset}}
\]

But in this case, we can also directly use the depreciation rate:
\[
\text{Annual Depreciation} = \text{Initial Value} \times \text{Depreciation Rate}
\]

1. **Annual Depreciation:**

\[
\text{Annual Depreciation} = 5000 \times 0.125 = 625
\]

So, the system depreciates by **\$625 per year**.

### Value of the Computer System after a given period:
The value at any point in time can be calculated by subtracting the accumulated depreciation from the initial value:

\[
\text{Value after n years} = \text{Initial Value} - n \times \text{Annual Depreciation}
\]

Where $ n $ is the number of years.

If you'd like to calculate the value after a specific number of years or any further details, let me know!

Would you like me to expand on anything or continue with a specific period? Here are some related questions:

1. How much is the value of the computer after 3 years?
2. What is the accumulated depreciation after 5 years?
3. How would the calculation change with a residual value?
4. What is the total depreciation after 10 years?
5. How does the straight-line method compare with other depreciation methods?

**Tip:** Straight-line depreciation is simple but does not account for varying usage over time, unlike declining balance methods.

A computer system was purchased on 1st July for 5000 the depreciation rate is 12.5% p.a. using the straight line method there is no residual value.

Learn how to calculate the straight-line depreciation for a computer system purchased at $5000 with a 12.5% annual depreciation rate. Understand key concepts such as annual depreciation and value calculation over time. Suitable for students in Grades 9-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation