8.2
In 2006 you bought a machine for R375 000. The value of the machine depreciated
at a rate of 16% p.a on the reducing balance for 3 years. Thereafter the depreciation rate
changed to 18,1% p.a.
3.2.1 What was the book value of the machine after 7 years?
3.2.2 Calculate the average depreciation rate per annum over the 7 years.
A school will need to replace some of its equipment in 6 years' time. The principal
calculated that the new equipment will cost R44 500. The school establishes a sinking fund
pay for the new equipment and makes an immediate deposit of R6 300 into the fund,
which
generates interest at 6,85% p.a. compounded monthly.
3.3.1 Show that the value of the sinking fund that the school must deposit money
intowill beR35 008,65 after depositing the R6 300.
B.3.2 How much money should the school deposit each month so that the fund
will have enough money to cover the cost of the new equipment?
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