the estimated life of an asset is 8 years. determine the annual straight - line rate of depreciation.\nthe…

the estimated life of an asset is 8 years. determine the annual straight - line rate of depreciation.\nthe annual rate is \n(round to the nearest hundredth if necessary.)

the estimated life of an asset is 8 years. determine the annual straight - line rate of depreciation.\nthe annual rate is \n(round to the nearest hundredth if necessary.)

Answer

Explanation:

Step1: Recall straight - line depreciation formula

The formula for the annual straight - line rate of depreciation $r$ is $r=\frac{1}{n}$, where $n$ is the estimated life of the asset.

Step2: Substitute the value of $n$

Given $n = 8$ years. So, $r=\frac{1}{8}$.

Step3: Convert to percentage

To convert the fraction to a percentage, we multiply by 100. So, $r=\frac{1}{8}\times100=\frac{100}{8} = 12.5%$.

Answer:

$12.50%$