Question

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

Answer 1

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.

Answer 2

The only answers are

$61,500
$79,500
$3500
$4000

Answer 3

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.