5.4 FA HW exponential depreciation

Your shiny new boat cost $7650.  The depreciation for your boat is 14% per year. Estimate the value of your vehicle in 3 years. What is the equation that models this problem?

• y= 7650(.14)³
• y= 7650(.86)³
• y= 7650(1+.86/1)^3*1

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Your shiny new boat cost $7650.  The depreciation for your boat is 14% per year. Estimate the value of your vehicle in 3 years. What is the answer?

• 20.99
• 49,226.64
• 11,333.81
• 4865.82

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Daniel’s Print Shop purchased a new printer for $35,000. Each year it depreciates at a rate of 5%. How much will the printer be worth in 8 years?

• $23,219.72
• $136.72
• $51,710.94
• $16,710.94

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The term __________ refers to a decrease in the value of property as a result of use and age

• capitalized cost reduction

• depreciation

• amortization

• residual value

A car was bought for $36,000 and the insurance company decided to calculate its depreciation each year as 12.5% from the period of July 12, 2017 to July 12, 2020. The time (in years) during which the price of the car was depreciated at 12.5% is _____.

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If a vehicle costing $10,000 depreciates by 10% each year for 3 years, what is the cost of the vehicle after 3 years?

• $7,000

• $7,290

• $13,000

• $13,310

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The loss of an asset's value over time is called

• depreciation
• equalization
• amoritization
• normalization

Raphael purchased a three year old car for $16,000. He was told that this make and model depreciates at 5.45% per year. What was the original price of this car when it was new?

• $17,045

• $19,562,97

• $18,123.45

• $18,929.34

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The car that Diana bought was 8 years old. She paid $6,700. This make and model depreciates exponentially at a rate of 14.15% per year. What was the original price when it was new?

• $22,706.62

• $22,076.62

• $27,276.62

• $22,067.62

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How much is the car worth, fill in the blank $_____.39

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