MARKS: 70 Assignments
Question 1
In 2010 M. Cocuy went of an retirement. Al the end of 2010 he bought himse a new
car for R120 000 cash Every year the car's value deprecated by 6% per annum. Arne
end of 2012 he decided to invest R55000 at 10.5% per annum cempounded veeny at Bank
A Investment A) Hs neghbor also invested R55 000 for the same penod at 124. per
annun simple interest at a different bank Bank B (Investment B).
Given below is the table Mr. Caody used to keep track of his car and his investment
Use the table below to answer the questions that follow.
2017
2018
Note: The values in this table are rounded off to the nearest
rand.
At the
2012
2013 2014 2015 2016
end of
Value of
R101 589 A R85 967 R79 090
Vehicle
Value of
Investment R55 000 R60 775 R67 157 R74 208 R82 000
R66942
D
Value of
neighbor's
Investment
B
R55 000
F
R74 800 RS1400
R88 000
R$4.000
Why does the value of the vehicle start at R101 563 at the end of 2012
1.2
M. Caddy says his car is depreciating. Explain the meaning of depreciation​