The cost of a minibus was Shilling 950,000. It depreciated in value by 5% per year for the first two years by 15% per year for the subsequent years.

Question

(a) Calculate the value of the minibus after years
(b) After 5 years the minibus was sold through a dealer at 25% more than its value to Mr. X. If the dealers’ sale price was to be taken as its value after depreciation, calculate the average monthly rate of depreciation for 5 years.