Z'nia:

https://www.mathsgenie.co.uk/resources/83_compound-interest-and-depreciation.pdf 

 

Appreciation and Depreciation

Appreciation is the increase of the value of something over time.

Depreciation, on the other hand, is the opposite- it is the decrease of value of something over time.

The value of houses or assets over time, since a house or property will appreciate the longer you own it.

A car, however, depreciates over time when bough from new due to wear and tear.

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(1 year Depreciation)

1. A machine costing $ 286,000 depreciates at 5% per annum. 

i.  Calculate the amount by which it depreciates. 

ii. Calculate its new value

iii. 

2. A boat is bought for £30000. It depreciates at a rate of 5% per year.

i.  Calculate the amount by which it depreciates. 

ii. Calculate its new value after 2 years

1. The price of a machine depreciates by 10% every year. If the present value of the machine is $100,000, what will be its value after 2 years?

2. Richard buys shares worth $20,000. If the price of his shares declines by 10% at the end of every year, how much money will he get by selling his shares after two years?

3. An item of jewelry is purchased for $1025 and it has an average depreciation in value by  5% each year. How much would it be worth two years after purchase?

4. The value of my car depreciated 5% this year.

If its value was $4000

i. By how much did it depreciate?

ii. What is the current value of the car?