QUESTION SIX MARKS
A company industrial printer was purchased for on 1 st January. On 1 st January
each following year, the value of the industrial printer is, of its value on 1 st January in
the previous year.
a. Geometrically calculate for the value of the industrial printer exactly 6 years after it
was purchased?

To calculate the value of the industrial printer after 6 years, we can use the formula for geometric decay. The value after each year is , where:

Plugging the values in, we have:

Calculating :

Now substituting this back in:

So, the value of the industrial printer exactly 6 years after it was purchased is approximately .

This value reflects the impressive longevity of technological assets, even as they depreciate. Businesses often strategize to maximize their return on these investments, enhancing their workflows using such machinery.

The concept of depreciation, especially in an industrial context, highlights the importance of understanding both asset value and technology longevity. It’s fascinating how some machinery can outlast expectations, serving businesses for years while maintaining a degree of operational effectiveness. Always ensure to monitor and evaluate the performance regularly!