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The cost of minibus was sh.950,000.It depreciated in value by 5% per year for the first two years and by 15% per year for the subsequent years.
(a)Calculate the value of the minibus after 5 years
(b)After 5 years the minibus was sold through a dealer at 25% more than its value to Mr x.If the dealer’s sale price was to be taken as its value after depreciation,calculate the average monthly rate of depreciation for the 5 years.