A piece of machinery depreciates $7000 the first year, $6800 the second year, and $6600 the third year. If the rate of depreciation is constant, what is the amount of depreciation of the piece of machinery in the sixth year?
1. $41,000
2. $6000
3. $62,000
4. $5800
Since the rate of depreciation is constant, the amount of depreciation decreases by $200 each year. The depreciation in the first year is $7000 and in the second year is $6800, so the amount of depreciation in the third year is $6600. Following this pattern, the depreciation in the fourth year would be $6600 - $200 = $6400. The depreciation in the fifth year would be $6400 - $200 = $6200. Therefore, the amount of depreciation in the sixth year would be $6200 - $200 = $6000.
Therefore, the answer is option 2. $6000.
To find the amount of depreciation in the sixth year, we need to determine the pattern of depreciation.
From the given information, we can observe that the depreciation decreases by $200 each year ($7000 - $6800 = $200, $6800 - $6600 = $200). This indicates a constant rate of depreciation.
Therefore, the depreciation amount continues to decrease by $200 each year.
To determine the depreciation in the sixth year, we can subtract $200 from the depreciation in the third year: $6600 - $200 = $6400.
Therefore, the amount of depreciation in the sixth year is $6400.
Thus, the correct answer is not provided among the given options.
To find the amount of depreciation in the sixth year, we need to determine if the depreciation follows a constant rate. Since the amount of depreciation decreased by $200 each year for the first three years, we can assume it will continue to decrease by $200 per year in the subsequent years.
To find the depreciation in the sixth year, we need to subtract $200 from the previous year's depreciation:
Depreciation in the fourth year = Depreciation in the third year - $200 = $6600 - $200 = $6400
Depreciation in the fifth year = Depreciation in the fourth year - $200 = $6400 - $200 = $6200
Depreciation in the sixth year = Depreciation in the fifth year - $200 = $6200 - $200 = $6000
Therefore, the amount of depreciation in the sixth year is $6000.
Hence, the correct answer is option 2.