Question

The value of a school bus reduces from $512000 to $343000in 3 years. Find the

Answer 1

Answer:

The uniform rate of depreciation is $56,333 per year, or 11% per year.

Step-by-step explanation:

Rate of Depreciation

If some object has a certain value P and after some time t its value decreases to Q, the rate of depreciation is a measure of how much its value changed per unit time.

It can be calculated as:

$\displaystyle R=\frac{P-Q}{t}$

It can also be expressed as a percentage, dividing the previous value by P.

The school bus reduces its value from $512,000 to $343,000 in 3 years, thus:

$\displaystyle R=\frac{512,000-343,000}{3}$

$\displaystyle R=\frac{169,000}{3}$

R = 56,333 $/year

Expressed as a percentage:

R = 56,333 / 512,000 = 0.11

R = 11%/year

The uniform rate of depreciation is $56,333 per year, or 11% per year.