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VCE Stuff => VCE Mathematics => VCE Mathematics/Science/Technology => VCE Subjects + Help => VCE General & Further Mathematics => Topic started by: BAH0003 on May 25, 2019, 01:51:58 am

Title: Depreciation Rate Question
Post by: BAH0003 on May 25, 2019, 01:51:58 am
Hi guys,

Was having trouble with this question, answer is apparently 42. If anyone could break this down that would be great

Problem:

"For insurance purposes, a new car was initially valued at $35,000. Using the unit cost method, the value of the car was depreciated for each kilometre travelled. At the start of 2016, the car was valued at $27,543.74. At the start of 2017, the car was valued at $14,999.60. If the number of kilometres travelled in 2016 was 29687, the depreciation rate in cents/km is closest to...

Thanks
Title: Re: Depreciation Rate Question
Post by: Jim_Bob on May 25, 2019, 07:01:53 am
Hey mate,
Lets break it down!
So, at the start of 2016, car value = 27543.74
Start of 2017, car value = 14999.60
To find the amount of depreciation that has taken place, subtract these two values which gives you 12544.14
So we know that within that year, the distance travelled was 29687.
To find the depreciation amount per km, just divide these values = 12544.14/29687 = 0.42
Then to get it as a percentage, times 100 = 42percent