a piece of machinery depreciates $7000 the first year, $6800 the second year, and $6600 the third year. is the rate of deprecation is constant, what is the amount of depreciation of the piece of machinery in the sixth year?
Since the rate of depreciation is constant, we can assume that the depreciation is decreasing linearly.
Let's calculate the annual decrease in the depreciation:
Annual decrease = (Depreciation in Year 1 - Depreciation in Year 2) / (Year 1 - Year 2)
Annual decrease = ($7000 - $6800) / (1 - 2)
Annual decrease = $200 / (-1)
Annual decrease = -$200
Now we can calculate the depreciation in each year:
Depreciation in Year 1 = $7000
Depreciation in Year 2 = Depreciation in Year 1 - Annual decrease = $7000 - $200 = $6800
Depreciation in Year 3 = Depreciation in Year 2 - Annual decrease = $6800 - $200 = $6600
As we can see, the depreciation is decreasing by $200 each year. So, the depreciation in the sixth year would be:
Depreciation in Year 6 = Depreciation in Year 3 - (2 * Annual decrease) = $6600 - (2 * -$200) = $6600 + $400 = $7000
Therefore, the amount of depreciation of the piece of machinery in the sixth year is $7000.
no
A.6000
B.32000
C.58000
D.11000
Apologies for the incorrect response. Let's calculate the depreciation for each year:
Depreciation in Year 1 = $7000
Depreciation in Year 2 = $6800
Depreciation in Year 3 = $6600
From the given information, we can observe that the depreciation decreases by $200 each year. So, let's continue this pattern for the subsequent years:
Depreciation in Year 4 = Depreciation in Year 3 - Annual decrease = $6600 - $200 = $6400
Depreciation in Year 5 = Depreciation in Year 4 - Annual decrease = $6400 - $200 = $6200
Now, we need to find the depreciation in Year 6:
Depreciation in Year 6 = Depreciation in Year 5 - Annual decrease = $6200 - $200 = $6000
Therefore, the amount of depreciation of the piece of machinery in the sixth year is $6000. Thus, the correct answer is option A.