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Financial Appreciation and Depreciation

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Financial Appreciation and Depreciation

Work out percentage changes using the original value as the starting amount. Show your calculations where space is provided.

Understanding Appreciation and Depreciation

1.What does it mean when an asset appreciates in value?

Its value increases over time.
Its value decreases over time.
Its value stays exactly the same.
It is exchanged for another asset.

2.A townhouse rises in value from $360,000 to $414,000. What is its percentage appreciation?

3.Which assets commonly lose value as they age or are used? Select all that apply.

A new car
A mobile phone
A family home
A laptop computer

4.Show how you calculated the percentage appreciation for the townhouse, which rose from $360,000 to $414,000.

Calculating Percentage Changes

5.A car was bought for $32,000 and is now worth $25,600. Calculate its percentage depreciation.

6.An investment property increases in value from $280,000 to $315,000. Find the percentage appreciation.

7.A tablet bought for $1,500 is sold later for $1,050. What percentage of its original value has it lost?

8.Complete both statements: A positive percentage change means the asset has . A negative percentage change means the asset has .

Financial Decisions in Real Life

9.In 2021, a unit in Adelaide was valued at $520,000. In 2025, it is valued at $585,000. Calculate the percentage appreciation. Give one reason why an owner might find this information useful.

10.A motorbike worth $9,600 depreciates by 15% in one year. What is its value after that year?

11.Explain one way that knowing about appreciation and depreciation could help someone make a financial decision. Include an example.