00:01
Okay, the problem is my lee is buying a computer for her own office, and she's going to depreciate that computer over a period of five years with straight -line depreciation.
00:17
So the initial value of the computer is $2 ,350.
00:25
I mean like a lot of money, a nice tall amount of money.
00:30
It's going to be straight -line depreciation over a period of five years.
00:35
One, two, three, four, and five years.
00:41
Now, straight line, and at the end of the five years, it's going to be worth zero.
00:46
How depreciation works.
00:47
This is straight line depreciation.
00:49
So that means it's going to drop in value in a straight line all the way down to zero.
00:56
So you can see from our chart that what you would do is you would divide 2 ,350 by five, and it's going to drop one -fifth of its value each of those five years...