Hugo is a professional bike rider.
The value of his bike will be depreciated over time using the flat rate method of depreciation.
The graph below shows his bike’s initial purchase price and its value at the end of each year for a period of three years.
- What was the initial purchase price of the bike? (1 mark)
--- 1 WORK AREA LINES (style=lined) ---
- Use calculations to show that the bike depreciates in value by $1500 each year. (1 mark)
--- 2 WORK AREA LINES (style=lined) ---
- Assume that the bike's value continues to depreciate by $1500 each year. Determine its value five years after it was purchased. (1 mark)
--- 2 WORK AREA LINES (style=lined) ---