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

Please tell me the errors

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

Please tell me the errors

It seems you are attempting to solve 4134 = 9800(1 - x)^3

First, divide both sides by 9800

(4134/9800) = (1 - x)^3 = 0.4218

Take the cubic root for both sides

0.75 = 1 - x

find x