Interest and Borrowing

Hong Kong

Stage 1 - Stage 3

Neil purchased a $\$1300$$1300 motorbike, which depreciates at a compounded rate of $10%$10% p.a. .

Answer the following questions without using the depreciation formula.

a

What is the depreciation for the first year?

b

What is the expected value after the first year?

c

What is the depreciation for the second year?

d

What is the expected value after the second year?

e

What is the total depreciation over the two years?

f

What is the percentage of the original value remaining after two years?

Write your answer to the nearest percentage.

Easy

Approx 6 minutes

A car, originally purchased for $\$3000$$3000, depreciates at $14%$14% p.a.

Use the depreciation formula to calculate its expected value after $8$8 years.

Give your answer in dollars, rounding to the nearest cent.

Mae purchased an iPod for $\$100$$100, which depreciates at $18%$18% p.a.

What is its resale value after $4$4 years?

Write your answer to the nearest cent.

Kathleen deposited $\$6500$$6500 into a stock portfolio. This amount decreased by $2%$2% each year for $3$3 consecutive years.

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