A car is valued at $25 000 when new. Its value depreciates by 25% per annum.
Which of the following best describes the change in value of the car after one year?
- Decrease of $1000
- Increase of $1000
- Decrease of $6250
- Increase of $6250
Financial Maths, STD1 F3 2024 HSC 30
The graph shows the decreasing value of an asset.
For the first 4 years, the value of the asset depreciated by $1500 per year, using a straight-line method of depreciation.
After the end of the 4th year, the method of depreciation changed to the declining-balance method at the rate of 35% per annum.
What is the total depreciation at the end of 10 years? (4 marks)
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Financial Maths, STD1 F3 2021 HSC 4 MC
Three years ago an appliance was valued at $2467. Its value has depreciated by 15% each year, based on the declining-balance method.
What is the salvage value today, to the nearest dollar?
- $952
- $1110
- $1357
- $1515
Financial Maths, STD2 F4 2020 HSC 11 MC
An asset is depreciated using the declining-balance method with a rate of depreciation of 8% per half year. The asset was bought for $10 000.
What is the salvage value of the asset after 5 years?
- $1749.01
- $4182.12
- $4343.88
- $6590.82
Financial Maths, STD1 F3 2019 HSC 21
A new car is bought for $24 950. Each year the value of the car depreciates by 14%.
Using the declining-balance method, calculate the salvage value of the car at the end of 10 years. (2 marks)
Financial Maths, STD2 F4 2019 HSC 37
A new car is bought for $24 950. Each year the value of the car is depreciated by the same percentage.
The table shows the value of the car, based on the declining-balance method of depreciation, for the first three years.
What is the value of the car at the end of 10 years? (3 marks)
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Financial Maths, STD2 F4 2018 HSC 26h
A car is purchased for $23 900.
The value of the car is depreciated by 11.5% each year using the declining-balance method.
What is the value of the car after three years? (2 marks)
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Financial Maths, STD2 F4 2005 HSC 26a
A sports car worth $150 000 is bought in December 2005.
In December each year, beginning in 2006, the value of the sports car is depreciated by 10% using the declining balance method of depreciation.
In which year will the depreciated value first fall below $120 000? (2 marks)
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Financial Maths, STD2 F4 2004 HSC 25a
Tai uses the declining balance method of depreciation to calculate tax deductions for her business. Tai’s computer is valued at $6500 at the start of the 2003 financial year. The rate of depreciation is 40% per annum.
- Calculate the value of her tax deduction for the 2003 financial year. (1 mark)
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- What is the value of her computer at the start of the 2006 financial year? (2 marks)
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Financial Maths, STD2 F4 2014 HSC 9 MC
A car is bought for $19 990. It will depreciate at 18% per annum.
Using the declining balance method, what will be the salvage value of the car after 3 years, to the nearest dollar?
- $8968
- $9195
- $11 022
- $16 392
Financial Maths, STD2 F4 2011 HSC 28b
Norman and Pat each bought the same type of tractor for $60 000 at the same time. The value of their tractors depreciated over time.
The salvage value
Norman drew a graph to represent the salvage value of his tractor.
- Find the gradient of the line shown in the graph. (1 mark)
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- What does the value of the gradient represent in this situation? (1 mark)
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- Write down the equation of the line shown in the graph. (1 mark)
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- Find all the values of
that are not suitable for Norman to use when calculating the salvage value of his tractor. Explain why these values are not suitable. (2 marks)
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Pat used the declining balance formula for calculating the salvage value of her tractor. The depreciation rate that she used was 20% per annum.
- What did Pat calculate the salvage value of her tractor to be after 14 years? (2 marks)
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- Using Pat’s method for depreciation, describe what happens to the salvage value of her tractor for all values of
greater than 15. (1 mark)
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Financial Maths, STD2 F4 2012 HSC 26b
Jim buys a photocopier for $22 000.
Its value is depreciated using the declining balance method at the rate of 15% per annum.
What is its value at the end of 3 years? (2 marks)