A piece of machinery depreciates $6000 the first hear, $5500 the second year, and $5000 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
To find the rate of depreciation, we can use the formula:
Rate of depreciation = (Total depreciation over the years) / (Total number of years)
Total depreciation over the years = $6000 + $5500 + $5000 = $16500
Total number of years = 3
Rate of depreciation = $16500 / 3 = $5500 per year
Therefore, in the sixth year, the amount of depreciation would be $5500.
The only answers are
$61,500
$79,500
$3500
$4000
Unfortunately, without more information about the pattern of depreciation, it's impossible to calculate the depreciation for the sixth year. None of the given answers seems to be correct.
To determine the amount of depreciation in the sixth year, we need to find the pattern in the depreciation amounts provided.
The given information suggests that the depreciation amount decreases by $500 each year. Therefore, we can calculate the depreciation for each year using the formula:
Depreciation = Initial depreciation amount - (Decrease in depreciation amount * (Year - 1))
Using this formula, we can calculate the depreciation for the sixth year:
Depreciation = $5000 - ($500 * (6 - 1))
Depreciation = $5000 - ($500 * 5)
Depreciation = $5000 - $2500
Depreciation = $2500
Therefore, the amount of depreciation for the piece of machinery in the sixth year is $2500.
To find the amount of depreciation in the sixth year, we need to determine the rate of depreciation per year first.
The given information shows that the amount of depreciation decreases by $500 each year. We can calculate the rate of depreciation as follows:
Rate of depreciation per year = (Depreciation in the first year - Depreciation in the second year) / Number of years between the first and second depreciation
Rate of depreciation per year = ($6000 - $5500) / (2 - 1) = $500
Now we can find the amount of depreciation in the sixth year by multiplying the rate of depreciation per year by the number of years since the third depreciation:
Depreciation in the sixth year = Rate of depreciation per year * (6 - 3)
Depreciation in the sixth year = $500 * 3 = $1500
Therefore, the amount of depreciation of the piece of machinery in the sixth year is $1500.