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.
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
1 answer
3 answers