the depreciation rate, rm, for a 150% declining rate using the declining - balance method for a recovery…

the depreciation rate, rm, for a 150% declining rate using the declining - balance method for a recovery period of 7 years, is: 0.214

the depreciation rate, rm, for a 150% declining rate using the declining - balance method for a recovery period of 7 years, is: 0.214

Answer

Explanation:

Step1: Recall the formula for declining - balance depreciation rate

The formula for the $x%$ declining - balance depreciation rate $R_m$ is $R_m=\frac{x}{n}$, where $x$ is the percentage factor and $n$ is the recovery period.

Step2: Substitute the given values

Here, $x = 150$ and $n=7$. So, $R_m=\frac{150}{100\times7}=\frac{1.5}{7}\approx0.214$.

Answer:

$0.214$