Answer :
Answer:
The amount of depreciation of piece of machine after 6 years is 4,410 unit .
Step-by-step explanation:
Given as :
The first year depreciation amount = 6000
The second year depreciation amount = 5700
The third year depreciation amount = 5400
let the rate of depreciation = R
I.e R = [tex]\dfrac{\textrm initial value - \textrm afinal value}{\textrm initial value}[/tex] × 100
or, R = [tex]\frac{6000-5700}{5000}[/tex] × 100
Or R = [tex]\frac{300}{5000}[/tex] × 100
So , R = 5 %
This rate of depreciation is constant
Time period = 6 years
Now,
Value of machine after n years = initial value × [tex](1-\dfrac{\textrm rate}{100})^{n}[/tex]
or, Value of machine after 6 years = 6000 × [tex](1-\dfrac{\textrm 5}{100})^{6}[/tex]
Or, Value of machine after 6 years = 6000 × [tex](0.95)^{6}[/tex]
∴ Value of machine after 6 years = 6000 × 0.7350
I.e Value of machine after 6 years = 4,410
Hence The amount of depreciation of piece of machine after 6 years is 4,410 unit . Answer