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You have won a new PS 5 system in a rafflel With a bit of research, you have determined that the cost of a new PS 5 system is $712 with tax. If you know that the value of gaming consoles decreases each year by 12%, based on the previous year's value, what will your PS 5 system be worth after 6 years?



Answer :

The salvage value of the PS 5 system after 6 years will be $640.

Explain the term depreciation?

  • Depreciation is the estimated decrease in value of fixed assets over the course of a fiscal year.
  • The amount of an asset's value has indeed been used is shown through depreciation.
  • It enables businesses to purchase assets over a predetermined length of time and generate income from those assets.

The formula for the depreciation;

Depreciation per year = (cost of asset - salvage value)/ (useful life of assets)

For the stated question-

  • Cost of new PS 5 system = $712.
  • salvage value to be find.
  • Depreciation per year = 12%
  • useful life of assets = 6 years.

12 = (712 - salvage value)/ (6)

salvage value = 712 - 12x6

salvage value = $640.

Thus, the salvage value of the PS 5 system after 6 years will be $640.

To know more about the depreciation, here

https://brainly.com/question/25806993

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