What is the second year's depreciation of a motor-bike which cost $2,300, if it depreciates at 12% p.a.?

To calculate the second year's depreciation of a motorbike that costs $2,300 and depreciates at 12% per annum, follow these steps:

### Step 1: Calculate the first year's depreciation
The first year's depreciation is 12% of the initial cost.
\[
\text{First Year's Depreciation} = 2300 \times \frac{12}{100} = 2300 \times 0.12 = 276
\]

### Step 2: Calculate the value after the first year
Subtract the first year's depreciation from the initial cost to find the value of the bike at the end of the first year.
\[
\text{Value after First Year} = 2300 - 276 = 2024
\]

### Step 3: Calculate the second year's depreciation
Now, calculate the second year's depreciation, which is 12% of the value after the first year.
\[
\text{Second Year's Depreciation} = 2024 \times \frac{12}{100} = 2024 \times 0.12 = 242.88
\]

So, the second year's depreciation is **$242.88**.

Would you like more details or have any other questions?

Here are some related questions you might find interesting:
1. What is the value of the bike after two years of depreciation?
2. How much total depreciation has occurred by the end of the third year?
3. What is the percentage decrease in value from the first year to the second year?
4. If the bike depreciates for five years, what will its value be at the end of the fifth year?
5. How would the depreciation amount change if the rate were 10% instead of 12%?

**Tip:** Depreciation typically compounds on the reduced value each year, making it important to recalculate based on the new value annually.

Learn how to calculate the second year's depreciation of a motorbike costing $2,300 at an annual depreciation rate of 12%. Follow step-by-step calculations and understand the depreciation formula used. Suitable for Grades 7-9 students learning about financial mathematics.

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