Question

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

uniform rate of depreciation per annum (R).​

Answer 1

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

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=(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=(512,000-343,000)/(3)`

`\displaystyle R=(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.