Everything Maths Grade 11

6.4 CHAPTER 6. FINANCE

SOLUTION

Step 1 : Determine what has been provided and what is required

P = R250 000

i = 0, 2

n = 5

A is required

Step 2 : Determine how to approach the problem

A = P(1− i)n

A = 250 000(1− 0 ,2)^5

Step 3 : Solve the problem

A = 250 000(0,8)^5

= 81 920

Step 4 : Write the final answer

Depreciated value after5 years is R81 920

Exercise 6 - 2

1. On January 1, 2008the value of my Kia Sorento is R320 000. Each year after that, the cars value
   will decrease 20% of the previous years value. What is the value of the car on January 1, 2012?


2. The population of Bonduel decreases at a reducing-balance rate of 9 ,5% per annum as people
   migrate to the cities. Calculate the decrease in population over a periodof 5 years if the initial
   population was 2 178 000.


3. A 20kg watermelon consists of 98% water. If it is left outside in the sun it loses 3% of its water
   each day. How much does it weigh after a monthof 31 days?


4. A computer depreciates at x% per annum using the reducing-balance method. Four years ago
   the value of the computer was R10 000 and is now worth R4 520. Calculate the value of x correct
   to two decimal places.

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