SmarterEd

Aussie Maths & Science Teachers: Save your time with SmarterEd

v1 Financial Maths, STD2 F1 2007 HSC 26bi

Isla is in her third year working as a freelance photographer.

Isla purchased photography equipment for $4200.

After 3 years it has depreciated to $3150 using the straight-line method.  

Calculate the rate of depreciation per year as a percentage.   (2 marks)

Show Answers Only

`text(8.3%)`

Show Worked Solution

`S = V_0-Dn`

`S = $3150,\ \ \ V_0 = 4200,\ \ \ n = 3`

`3150` `= 4200-D xx 3`
`3D` `= 1050`
`D` `= $350`

 
`:.\ \text{Rate of depreciation per year}= 350 / 4200 xx 100 = 8.3\%`

v1 Financial Maths, STD2 F1 SM-Bank 6

Jasmine intends to keep a car purchased for $11 200 for 10 years. At the end of this time its value will be $2400.

  1. By what amount, in dollars, would the car’s value depreciate annually if Jasmine used the flat rate method of depreciation?  (1 mark)
  2. Determine the annual flat rate of depreciation correct to one decimal place.  (1 mark)
Show Answers Only

a.    `$880`

b.    `7.9\text{% (1 d.p.)}`

Show Worked Solution
a.     `\text{Depreciation}` `= 11\,200-2400`
    `=  $8800`

`:.\ \text{Annual depreciation}`

`= 8800 / 10`

`= $880`

b.    `:.\ \text{Flat rate of depreciation}`

`= 880 / (11\ 200) \times 100\text{%}`

`= 7.857…`

`= 7.9\text{% (1 d.p.)}`

v1 Financial Maths, STD2 F1 SM-Bank 3

A business purchased a delivery van for $48 000.

For accounting purposes, the van is depreciated using the straight-line depreciation method.

The van is depreciated at a flat rate of 12% of the purchase price each year.

  1. By how many dollars will the van depreciate annually? (1 mark)
  2. Calculate the value of the van after two years. (1 mark)
  3. After how many years will the van be worth $14 400? (1 mark)
Show Answers Only

a.    `$5760`

b.    `$36\ 480`

c.    `6\ text(years)`

Show Worked Solution
a.     `text(Annual depreciation)` `= 12\% xx 48\ 000`
    `= $5760`

b.    `text(After 2 years,)`

`text(Value)` `= V_0-Dn`
  `= 48\ 000-(2 xx 5760)`
  `= $36\ 480`

c.    `text(Find)\ n\ text(when value = $14 400)`

`14\ 400` `= 48\ 000-5760 xx n`
`5760n` `= 33\ 600`
`:.n` `= (33\ 600) / 5760 = 6`
  `= 6\ \text{years}`

v1 Financial Maths, STD2 F1 2021 HSC 19

Sophie bought a set of gym equipment four years ago. It depreciated by $1800 each year using the straight-line method of depreciation. The equipment is now valued at $6200.

Find the initial value of the gym equipment.  (2 marks)

Show Answers Only

`$13\ 400`

Show Worked Solution

`text{Find initial value}\ (V_0):`

`S` `=V_0-Dn`  
`6200` `=V_0-1800 xx 4`  
`V_0` `=6200 + 7200`  
  `=$13\ 400`  

v1 Financial Maths, STD2 F1 2017 HSC 11 MC

A car was bought for $22 500 and one year later its value had depreciated to $18 450.

What is the approximate depreciation, expressed as a percentage of the purchase price?

  1. 18%
  2. 22%
  3. 78%
  4. 82%
Show Answers Only

`A`

Show Worked Solution
`text(Net Depreciation)` `= 22\ 500-18\ 450`
  `= $4050`

 

`:. %\ text(Depreciation)` `= 4050 / (22\ 500) xx 100`
  `= 18%`

`=> A`

v1 Financial Maths, STD2 F1 2023 HSC 4 MC

A company car was valued at $72 000 when new. The value of the car depreciates at a rate of 18 cents per kilometre travelled.

What is the value of the car after it has travelled a total distance of 145 000 km?

  1. $45 900
  2. $31 920
  3. $25 920
  4. $16 100
Show Answers Only

`A`

Show Worked Solution
`text{Depreciation}` `=0.18 xx 145\ 000`  
  `=$26\ 100`  

 

`text{Car value}` `=72\ 000-26\ 100`  
  `=$45\ 900`  

 
`=>A`