Financial Maths, STD2 F4 2006 HSC 27c
Kai purchased a new car for $30 000. It depreciated in value by $2000 per year for the first three years.
After the end of the third year, Kai changed the method of depreciation to the declining balance method at the rate of 25% per annum.
- Calculate the value of the car at the end of the third year. (1 mark)
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- Calculate the value of the car seven years after it was purchased. (2 marks)
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- Without further calculations, sketch a graph to show the value of the car over the seven years.
Use the horizontal axis to represent time and the vertical axis to represent the value of the car. (3 marks)
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Financial Maths, STD2 F4 2005 HSC 15 MC
Financial Maths, STD2 F4 2007 HSC 12 MC
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 `S`, in dollars, of each tractor, is its depreciated value after `n` years.
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 `n` 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 `n` greater than 15. (1 mark)
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