A machine costing R60 000 depreciates at 20% p.a. on the reducing-balance method. What is its book value after 3 years?
Answer and explanation
Correct answer: A.
- Step 1: Use .
- Step 2: .
Answer
.
Why not the others: : straight-line depreciation was used instead of reducing balance. : the rate was added instead of subtracted. : one extra year of depreciation was applied.
Practise more Finance and growth.
Free questions with an explanation for every one, and full timed South Africa Matric mock tests.
More Finance and growth questions
- R12 000 is invested for 2 years at 6% p.a. simple interest. What is the accumulated amount?
- R6 000 is invested for 4 years at 7% p.a. simple interest. What is the accumulated amount?
- A machine costing R100 000 depreciates at 10% p.a. on the reducing-balance method. What is its book value after 3 years?
- A machine costing R40 000 depreciates at 15% p.a. on the reducing-balance method. What is its book value after 2 years?
- R4 000 is invested for 3 years at 9% p.a. simple interest. What is the accumulated amount?
- R15 000 is invested at 12% p.a. compounded annually. What is the value of the investment after 2 years?