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Home > Mathematics > General Mathematics > HSC Course > Financial Mathematics > FM6: Depreciation > Quick quiz: A sample of multiple choice questions for this topic.

FM6

1. Machinery is purchased for $15000 and depreciates by $1200 per year.
   What is the machinery worth after 5 years?
    
   • $9000
   • $13 800
   • $6000
   answer
   
    
2. A car has an initial value of $20 000 and depreciates by $4000 per year.
   Write the linear function for the depreciation.
    
   • S="4000n-20000
   • S="4000-20000n
   • S="20000-4000n
   answer
   
    
3. Equipment worth $32 000 depreciates by $4800 per year.
   After how many months will the equipment have a zero salvage value?
    
   • 6²/₃ months
   • 80 months
   • 7 months
   answer
   
    
4. Office equipment is purchased for $10 000 and depreciates at a rate of 25% p.a.
   What will its value be after 5 years (answer to nearest dollar)?
    
   • $7500
   • $2500
   • $2373
   answer
   
    
5. Electrical tools purchased for $7400 depreciate at a rate of 20% p.a.
   Calculate the tax deduction for depreciation for these tools for the financial year.
    
   • $1480
   • $2220
   • $5920
   answer
   
    

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Answers

1. $9000
    
2. S="20000-4000n
    
3. 80 months
    
4. $2373
    
5. $1480