Show your working for all calculations. Calculate dollar values to 2 decimal places.

(a)

Bob bought a car in March 2000 for $27,000. In 5 years it depreciated to $0.
Is this an example of straight-line or reducing balance depreciation? Explain your answer.
For parts (b) (d), depreciation is by the reducing balance method.
(b)
Jack bought a computer for $1,800. If it depreciates at 20% p.a., what will it be worth in 2
years?
(c)
Jack will buy a new model when the value of his old computer reaches $750.
How long will this take?
(d)
How much longer would Jack keep the old computer if the rate of depreciation were 16%?