The value of a machine is estimated to be 27,000 at the end of 1994 and 21,870 at the beginning of 1997. Supposing it depreciates at a constant rate per year of it's value at the beginning of the year, calculate: 1) Rate of depreciation 2) The value of the machine at the end of 1997 and at the beginning of 1994
How do I proceed? Is the time 2 or 3 years?
Where P = principal, CI = compound interest, n = number of years, R = rate