MBF3C (Gr.11 Math) UNIT 8: PERSONAL FINANCE (All about cheques accounts, savings accounts, investments, credit cards, obtaining vehicles, operating a vehicle) Some examples and formula provided that can be use, just choose formula that suits the question :)

Original Price Current Price Original Price x 100% Depreciation Rate = mExample A new mid-sized vehicle sells for $29,795. Joseph looked at used cars of the same model and recorded the prices: Age of Vehicle Average Selling (years) Price ($) 1 23,000 2 19,750 3 13,500 4 10,600 a) Calculate the depreciation amount, in dollars, of the vehicle during the first year, in dollars. b) Calculate the depreciation rate, after one year, as a percent of the new vehicle price. c) If Joseph purchases the newest model of this vehicle, how much can he expect the price to depreciate after 4 years? SOLUTION: a) Depreciation = new car price value after one year Question 8 (4 points). =29,795 - 23,000 =6,795 A new hybrid car costs $35,560, including tax. \\fter 1 year, the value of this car is $27,736.80 Therefore, the vehicle depreciated by $6,795 in the first year. b) Determine the depreciation rate (%) of the vehicle after the first year. Show all ps of your calculations for full marks. (2 marks) new price price after 1 year new price price after Lyear . 40007 percent depreciation = Rewipice ch year, the depreciation rate can be different. After 2 years the rate of _ 259779955 % 100% 'Qn on the $27,736.80 car's value was 13%, what is the new value of the =22.8% Therefore, the vehicle depreciated about 22.8% after the first year. c) 29,795 10,600 = S5 X 100% = 1% 100% =64.4% Therefore, he can expect the vehicle to depreciate about 64% in 4 years