Name: ___________________________________ Use the depreciation equation to solve these problems. 1.

The manufacturer suggested retail price (MSRP) for a 2010 Aston Martin Vantage is $120,000. You have the cash to spend, and you buy this car. In three years, how much would this car sell for if the depreciation rate is 16% per year?

2. Maggie bought 17 display Dell laptop with a 2.53 GHz processor and 500 G hard drive for $700. Assuming she computed a 15 % depreciation rate correctly when she put the laptop up for sale, how many years has Maggie had the computer if she is selling it on eBay for $225.

3. A 2009 Case IH 7120 Combine is $219,000. It is bought and sold 1.5 years later. How much should it be sold for if you compute in the depreciation rate of 15.5%?

4. Ms. Baker has her lovely 1999 Honda Accord which had a retail price of $22,000 when it came out. What would the value of her car be now if it has depreciated in value 15.25% each year?

5. A used 1984 Pontiac Fiero is being sold for $1,200. Using this information and ignoring the effects of inflation, about how much would the 1984 Pontiac Fiero have sold back in 1984 if it has depreciated in value 15.5%?

4. Kelly invests his money at Iowa State Bank , which offers a CD account with a 2.5% interest rate compounded semi-annually. Ryan invests his money at Middle States Bank, which offers a CD account with a 2.2% interest rate compounded continuously. If they both invest $3,000 for 20 years, who did a better investment.?

7. Use the internet or a valid resource to find the following information. a.) Choose a location: (Example: New York City) b.) Find the population in year 2,000 of this location. c.) Find the population in the year 2010 of this location. d.) What resource did you use?