Question

the cost of a machine depreciated by 4000 during the first year and by 3600 during the second year calculate
(1) the rate of depreciation
(2) the original cost of the machine
(3) its cost at the end of the third year

Answer 1

1.10%
2.40000
3.40000-4000-3600-3240
=29160

Answer 2

1) depreciated money of 1st year-2nd year= 4000-3600=400

R=I×100/P×T

R=400×100/4000×1 =10%

Therefore rate of depreciation =10%

2) depreciated price of the 1st year=4000

P=I×100/R×T

P=4000×100/10×1 =40000

Therefore orignal cost=40000

3) 1st year A=40000-4000= 36000

2nd year A= 36000-3600=32400

For 3rd year I=P×R×T/100

32400×10×1/100 =3240

A= 32400-3240 (besause of depreciation)

A= 29160