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.
