MVRUS - Motoring Mathematics
Buying a Car
Two similar cars (two years old) are shown in a sellers' guide as having the following prices| Car | New price | Service | Miles | Selling Price |
|---|---|---|---|---|
| A | £10,000 | Yes | 30,000 | £7,500 |
| B | £10,000 | No | 30,000 | £5,700 |
A
regular service interval is 5000 miles and costs £200 a service.
Who came
out the winner, the owner who did regular services or the one who did not?
Selling
price A - Selling price B (£7,500 - £5,700 = £1,800 )
i.e. Car A sold for more than car B
Service
costs car A 30,000 ÷ 5,000 = 6 services @ £200 = £1,200
Difference
£1,800 - £1,200 = £600
So, even with a regular service
history and its associated costs the
owner of car A still makes £600 more than that of car B.
Once
a car is taken onto the road its value begins to decline. The depreciation is the difference between
the original purchase price and the final selling price. Find the annual depreciation for a car purchased
at £5500 and sold three years later for £2800.
Depreciation = (Original price
- Selling price)÷ Time of ownership = (5500 - 2800)÷ 3 = 2700 ÷ 3 = £900
Answer:
The annual depreciation is £900 per year This means that for each year that the car was owned it cost
£900. £900 ÷ 52 = £17 A week or £17 ÷ 7 = £2.40 a day