Hong Kong
Stage 1 - Stage 3

# Applications of Compound Interest - Depreciation

## Interactive practice questions

Neil purchased a $\$1300$$1300 motorbike, which depreciates at a compounded rate of 10%10% p.a. . Answer the following questions without using the depreciation formula. a What is the depreciation for the first year? b What is the expected value after the first year? c What is the depreciation for the second year? d What is the expected value after the second year? e What is the total depreciation over the two years? f What is the percentage of the original value remaining after two years? Write your answer to the nearest percentage. Easy 6min A car, originally purchased for \3000$$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.

Easy
1min

Mae purchased an iPod for $\$100$$100, which depreciates at 18%18% p.a. What is its resale value after 44 years? Write your answer to the nearest cent. Easy 1min Kathleen deposited \6500$$6500 into a stock portfolio. This amount decreased by $2%$2% each year for $3$3 consecutive years.

Easy
1min