· A welding machine in the plumbing workshop is worth 15000 and is estimated
to have a useful life of 10 years. What would be the estimated
value of the
machine
after 3 years it depreciates linearly?



Answer :

Sure, let's find out the estimated value of the welding machine after 3 years, given that it depreciates linearly over a useful life of 10 years.

1. Initial Value: The initial value of the welding machine is 15,000.

2. Useful Life: The machine is estimated to have a useful life of 10 years.

3. Years Passed: We need to find the depreciation after 3 years.

4. Annual Depreciation:
To find out the annual depreciation, we divide the initial value by the useful life of the machine.
[tex]\[ \text{Annual Depreciation} = \frac{\text{Initial Value}}{\text{Useful Life}} \][/tex]
Substituting the given values:
[tex]\[ \text{Annual Depreciation} = \frac{15000}{10} = 1500 \][/tex]

5. Total Depreciation after 3 Years:
To find the total depreciation after 3 years, we multiply the annual depreciation by the number of years passed.
[tex]\[ \text{Total Depreciation} = \text{Annual Depreciation} \times \text{Years Passed} \][/tex]
Substituting the values:
[tex]\[ \text{Total Depreciation} = 1500 \times 3 = 4500 \][/tex]

6. Estimated Value after 3 Years:
Finally, to find the estimated value of the welding machine after 3 years, we subtract the total depreciation from the initial value.
[tex]\[ \text{Estimated Value} = \text{Initial Value} - \text{Total Depreciation} \][/tex]
Substituting the values:
[tex]\[ \text{Estimated Value} = 15000 - 4500 = 10500 \][/tex]

So, the estimated value of the welding machine after 3 years is 10,500.