Depreciation and Appreciation

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. What time (in years) during which the price of the car was depreciated at 12.5%?

• 2

• 3

• 4

• 2020

Which of the formulas below can be used for appreciation?

•  $A=P\left(1-\frac{R}{100}\right)^n$  

•  $A=P\left(1+\frac{R}{100}\right)^n$  

•  $A=R\left(1+\frac{P}{100}\right)^n$  

•  $A=R\left(1-\frac{P}{100}\right)^n$  

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

What should the formula below be used to calculate? Select all that apply

 $A=P\left(1+\frac{R}{100}\right)^n$  

• Simple Interest

• Compound Interest

• Depreciation

• Appreciation

A house depreciated in value from $305,000 to $274,500. What is the depreciation as a percentage of the original price?

A farm that costs $987,000 depreciates by 12% each year. What is its value after 10 years?

• $82,274.11

• $98,700

• $274,880.46

• $306,574