Computer Depreciation and Value Analysis

The video tutorial explains how a computer purchased for $1,512 depreciates over eight years to a value of zero. It demonstrates calculating the annual depreciation rate by dividing the purchase price by eight, resulting in a yearly decrease of $189. The tutorial further calculates the computer's value after three years by subtracting three times the annual depreciation from the purchase price, resulting in a value of $945.

What was the initial purchase price of Ramon's computer?

• $1,800

• $1,000

• $1,512

• $1,200

Over how many years does the computer's value decrease to zero?

• 8 years

• 12 years

• 10 years

• 5 years

How much does the computer's value decrease each year?

• $250

• $200

• $189

• $150

What is the value of the computer after three years?

• $1,300

• $1,200

• $1,000

• $945

How much total depreciation occurs over three years?

• $567

• $567

• $700

• $600