(a) A recent accounting graduate opened a new business and installed a computer system that costs ₹ 45,200. The computer system will be depreciated…

A recent accounting graduate opened a new business and installed a computer system that costs ₹ $\displaystyle 45$,200. The computer system will be depreciated linearly over $\displaystyle 3$ years and will have a scrap value of ₹ 0.

What is the rate of depreciation?

Give a linear equation that describes the computer system's book value at the end of $\displaystyle \mathrm{t}^{\text {th }}$ year, where $\displaystyle 0 \leq \mathrm{t} \leq 3$.

What will be the computer system's book value at the end of the first year and a half?

Find the effective rate which is equivalent to normal rate of $\displaystyle 10$% p.a. compounded :

semi-annually.

quarterly.

[Given $\displaystyle (1.05)^2=1.1025$, $\displaystyle (1.025)^4=1.1038$]