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: Use the linear equation for book value derived earlier: \[ V(t) = 45200 - 15066.67t. \] Step 2: Substitute \( t = 1.5 \) to find the book value after 1.5 years: \[ V(1.5) = 45200 - 15066.67 \times 1.5. \] Step 3: Compute the value: \[ V(1.5) = 45200 - 22600 = 22600. \] Thus, the book value at the end of 1.5 years is ₹ 22,600.