Worksheet
Growth and Decay
Solve each of the following word problems.
1. Ten years ago, Mr. and Mrs. Boyce bought a house for $96,000. Their home is now worth $125,000. Assuming a steady rate of growth, what was the annual rate of appreciation?
2. The greens bought a condominium for $83,000. Assuming that its value will appreciate 6% per year, how much will the condo be worth in five years when the Greens are ready to move?
3. Ten years ago, Tiffany's mother bought a new car for $9000. Tiffany is now going to buy the car for $900. Assuming a steady rate of depreciation, what was the a[[roximate annual rate of depreciation?
4. A piece of machinery valued at $1500 depreciates at a steady rate of 10% yearly. The owner of the business plans to replace the equipment when its value has depreciated to $500. In how many years will the equipment be replaced?
5. Kyle has saved $500 of the money he earned working at Carousel Music. If he spends 10% of the money each week, after how many weeks will he have less than $1?
6. Zeller Industries bought a piece of weaving equipment for $50,000. It is expected to depreciate at a steady rate of 10% per year. When will its value have depreciated to $25,000?
7. The Fresh and Green Company has a savings plan for its employees. If the employee makes an initial contribution of $1000, the company pays 8% interest compounded quarterly.
- If an employee participating in the plan withdraws the balance of the account after five years, how much will the company have paid into the account?
- If an employee participating in the plan withdraws the balance of the account after thirty-five years, how much will the company have paid into the account?