Interactive practice questions
The management for a golfing club purchased new lawn mowers for $\$23000$$23000.
Using the flat rate depreciation method, with a rate of $12%$12% per annum, find the value of the lawn mowers after four years.
Using the reducing balance depreciation method, with a rate of $16%$16% per annum, calculate the value of the lawn mowers after four years.
Round your answer to the nearest cent.
After $4$4 years, which method results in the greater depreciation?
Flat rate depreciation.
Reducing balance depreciation.
A particular piece of equipment, which has an initial value of $\$8360$$8360, depreciates using the unit cost method by $22$22 cents per hour of use. On average, the equipment is used for $3800$3800 hours per year.
After retiring from work, Hermione received a superannuation payment of $\$750000$$750000. She has two options for investing her money, shown below.
Xanthe is repaying a $\$55000$$55000 house loan with interest calculated quarterly at a rate of $7%$7% per annum. Quarterly repayments of $\$1487.93$$1487.93 are being made to service the loan, and twenty such repayments have already been made.