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A piece of machinery depreciates $8000 the first year, $7500 the second year, and $7000 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?



Responses

$43,500
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$6000
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$5500
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$19,500

1 answer

To find the depreciation of the piece of machinery in the sixth year, we first need to analyze the depreciation amounts for the first three years:

  • Year 1: $8,000
  • Year 2: $7,500
  • Year 3: $7,000

Next, we can see that the depreciation decreases each year by $500 (from $8,000 to $7,500 is a decrease of $500, and from $7,500 to $7,000 is also a decrease of $500).

If this pattern continues, we can determine the depreciation for the following years:

  • Year 4: $7,000 - $500 = $6,500
  • Year 5: $6,500 - $500 = $6,000
  • Year 6: $6,000 - $500 = $5,500

Therefore, the amount of depreciation of the piece of machinery in the sixth year is $5,500.