Multiple Choice Questions in General Mathematics

Financial Mathematics

Question 1.

Simon buys a car for $17 000 and uses Prime Cost Depreciation (straight line depreciation) to calculate
its salvage (present) value.
If the car depreciates at 20% p.a. what is its salvage value after 2 years?

A. $6 800
B. $10 200
C. $10 800
D. $13 600