Applications of Compound Interest - Depreciation
Interactive practice questions
Neil purchased a $\$1300$$1300 motorbike, which depreciates at a compounded rate of $10%$10% p.a. .
Answer the following questions without using the depreciation formula.
What is the depreciation for the first year?
What is the expected value after the first year?
What is the expected value after the second year?
What is the total depreciation over the two years?
What is the percentage of the original value remaining after two years?
Write your answer to the nearest percentage.
A car, originally purchased for $\$3000$$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.