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?

Answer 1

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.

Answer 2

no
A.6000
B.32000
C.58000
D.11000

Answer 3

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.