This document contains information about vehicle depreciation from a Consumer Mathematics textbook. It defines depreciation as vehicles losing value over time. Two example problems demonstrate calculating a car's depreciation and resale value over multiple years using given depreciation rates. The rates can vary from vehicle to vehicle but are provided in the examples. Students are assigned related questions from the textbook.

1. Unit 3 – Owning & Operating A Vehicle
Consumer Mathematics 30S
Vehicle Depreciation
All vehicles lose value as
they become older. This
is called depreciation. A
newer car depreciates
more than an older car.
The rates of depreciation
vary form vehicle to
vehicle.

2. Unit 3 – Owning & Operating A Vehicle
Consumer Mathematics 30S
Example Problem #1
A new car is sold for $35 000. Calculate the
depreciation and the car’s resale value at the end of the
first 3 years. The depreciation rate is 20% for the first
year and 15% for each each year after that. What is the
total depreciation after the 3 years?
First Year
$28 000
Second Year
$23 800
Third Year
20 230
Total
Depreciation
$14 770

3. Unit 3 – Owning & Operating A Vehicle
Consumer Mathematics 30S
Example Problem #2
Sam purchases a 4 year old used car for $10 500.
What will Sam’s truck be worth after 2 years if the
depreciation rate for this model of truck is 10% a year?
What is the total depreciation?
First Year
$9450
Second Year
$8505
Total
Depreciation
$1995

4. Unit 3 – Owning & Operating A Vehicle
Consumer Mathematics 30S
Textbook Assignment
Page 168 - 169
Questions
1 - 3