Question

Ahmed bought a TV for his room in 2016 for AED 1,500. he decided to sell it in 2020 for AED 900. what is the rate of depreciation when he bought the TV and when he sold it

Answer 1

40% depreciation over the 4 years

10% depreciation per year

Explanation:

The number of years between buying and selling is:

2020 - 2016 = 4

4 years

The amount of depreciation in the 4 years is:

AED 1,500 - AED 900 = AED 600

The percent depreciation for the 4 years is:

(1500 - 900)/1500 * 100% = 40%

The percent depreciation per year is:

40%/4 = 10%