A computer depreciates in value by 15% annually. If its initial value is $1,200, what is its value after 4 years?

Wed, 06 May 2026 16:25:01 +0000

**Why a Computer’s Value Drops by 15% Each Year—and How $1,200 Folds Over Time** In a world increasingly shaped by rapid technological change, few facts hit closer to home than this: a computer depreciates in value by 15% annually. If your model initially costs $1,200, understanding how that value shifts over time can help with long-term planning—whether you're buying new, selling, or budgeting for upgrades. With digital tools evolving faster than ever, from processor speeds to software demands, the lesson in depreciation is quiet but clear: asset value doesn’t last. **Why Depreciation Hits Computers So Hardly** The 15% annual depreciation reflects more than just physical wear—it's tied to fast-paced innovation and shifting consumer expectations. Computers, especially personal laptops and desktops, rotate through tech cycles that compress usable lifespan. Even reliable hardware becomes outdated as software requirements climb and new features render older components less efficient—without any visible damage. For buyers and owners alike, this means value declines steadily, mirroring the pace of technological progress, not mechanical failure.