Car Depreciation Quiz

The term __________ refers to a decrease in the value of property as a result of use and age

• capitalized cost reduction

• decprecitation

• amortization

• residual value

What is the annual depreciation for a car with an initial value of $35,000, a residual value of $2,500, and a useful life of 14 years?

Mathematical Equivalence

ON

What is the car's value after 5 years if the initial value is $55,000 and the annual depreciation is $2,000?

Mathematical Equivalence

ON

What happens to the car's value after exceeding its useful life?

• The value becomes negative.

• The value remains constant at the residual value.

• The value continues to depreciate.

• The value resets to its initial value.

Car A has an initial value of $30,000, a residual value of $6,000, and a useful life of 12 years.

Car B has an initial value of $28,000, a residual value of $4,000, and a useful life of 10 years

What is the annual depreciation of CAR A?

Car A has an initial value of $30,000, a residual value of $6,000, and a useful life of 12 years.

Car B has an initial value of $28,000, a residual value of $4,000, and a useful life of 10 years

What is the annual depreciation of CAR B?

Car A has an initial value of $30,000, a residual value of $6,000, and a useful life of 12 years.

Car B has an initial value of $28,000, a residual value of $4,000, and a useful life of 10 years

Which car loses more value per year?

• Car A

• Car B

What does 'Residual Value' refer to in a depreciation model?

• The value of the car at the time T

• The depreciation value of the car

• The value of the car at the end of its useful life

• The cost of insurance for the car

A new car is purchased for $40,000. The car has a residual value of $10,000 after 12 years, and it depreciates at a rate of 15% per year.

What is the value of the car after 6 years?

Tags

CCSS.7.RP.A.3

Match the following:

• $13,730.20

• Initial Value $15,000 at 20% depreciation for 6 years

• $7,414.80

• Initial Value $20,000 at 18% depreciation for 5 years

• $10,292.17

• Initial Value $24,000 at 19% depreciation for 4 years

• $10,331.21

• Initial Value $22,000 at 21% depreciation for 2 years

• $3,932.16

• Initial Value $18,000 at 17% depreciation for 3 years