# Stuck on this question. Successive Discounts and Depreciation

• Sep 10th 2013, 04:01 AM
kevinsta
Stuck on this question. Successive Discounts and Depreciation
Im stuck on this question because i keep getting the wrong answer.. Please give me the answer with full working out.

Craigh bought a computer system 3 years ago for \$9800. It is now valued \$4134. Using the reducing balance method find the annual rate of depreciation.

Here is my working out:
4134 = 9800(1-X)^3
-9800 - 9800

-5666 = (1-X)
^3

Cube root each side

-17.83 = 1-x

-18.83 = -x

x = 18.83

• Oct 3rd 2013, 04:54 PM
votan
Re: Stuck on this question. Successive Discounts and Depreciation
Quote:

Originally Posted by kevinsta
Im stuck on this question because i keep getting the wrong answer.. Please give me the answer with full working out.

Craigh bought a computer system 3 years ago for \$9800. It is now valued \$4134. Using the reducing balance method find the annual rate of depreciation.

Here is my working out:
4134 = 9800(1-X)^3
-9800 - 9800

-5666 = (1-X)
^3

Cube root each side

-17.83 = 1-x

-18.83 = -x

x = 18.83