4.6 Car Depreciation

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

Heather bought a 7-year old car for $12,500. When the car was new, it sold for $23,000. What is the depreciation rate of the car rounded to the nearest tenth?

(a)  

Maddie’s car exponentially depreciates at rate of 6.5% per year. If she bought the car when it was 5 years old for $14,500, what was the original price of the car?

• $20,297.30

• $10,583.27

• $19,866.26

• $10,361.58

A disadvantage of buying a new car is it loses value faster than a used car. This is called

• Capital gain

• Inflation

• Depreciation

• Amortization

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?

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

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

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

Sam bought a used car for $19,800. When this car was new, it sold for $28,500. If the car depreciates exponentially at a rate of 7.2% per year, approximately how old is the car, rounded to the tenths place?

(a)  

Match the following

• Current Value

• Age of Car

• Original Value

• Finding Rate