WORD PROBLEMS INVOLVING DEPRECIATION WORKSHEET

Problem 1 :

A car was purchased for $32500 and depreciated annually by 16%. Find its value after 10 years.

Solution

Problem 2 :

A motorbike was purchased for $8495 in July 2001 and depreciates at 12% each year. Copy and complete the following table:

a. For taxation purposes, the motorbike is essential for making an income (as it is used exclusively in a delivery service). Annual loss in value (called depreciation) can be used as a tax deduction. How much can be 'claimed' during the 4th year of use?

b. Find the value of the motorbike at the end of the 8th year.

c. What is the significance of F₁₀ - F₉?

Solution

Problem 3 :

a. If buy a car for $38500 and keep it for 3 years, what will its value be at the end of that period given that its annual depreciation rate is 20% ?

b. By how much did it depreciate?

Solution

Problem 4 :

A cabin cruiser was bought for $120000 in April 1998 and was sold for $45000 in April 2006. At what average annual rate of depreciation did the boat lose its value?

Solution

Problem 5 :

A small jet aeroplane was purchased for 3.4 million dollars in January 1998 and was sold for 2.35 million dollars in July 2005. What was its average annual rate of depreciation over this period?

Solution

Word Problems on Growth and Decay

Problem 1 :

A town with a population of 5,000 grows 3% per year. Find the population at the end of 10 years.

Solution

Problem 2 :

The population of Boomtown is 475,000 and is increasing at a rate of 3.75% each year. When will the population exceed 1 million people (to the nearest year)?

Solution

Problem 3 :

The population of Leave town is 123,000 and is decreasing at a rate of 2.375% each year.

• When will the population of Leave town drop below 50,000 (to the nearest year)?

• What will the population of Leave town be 100 years from now?

Solution

Problem 4 :

Problem The 1989 population of Mexico was estimated at 87,000,000. The annual growth rate is 2.4%. When will the population reach 100,000,000 (to the nearest year)?

Solution

Problem 5 :

The population of Small town in the year 1890 was 6,250. Since then, it has increased at a rate of 3.75% each year.

a) What was the population of Small town in the year 1915?

a) In 1940?

c) What will the population of Small town be in the year 2003?

d) When will the population reach 1,000,000 (to the nearest year)?

Solution