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Depreciation

Depreciation can be thought of as when something gets reduces over time. This might be the value of a car or the volume of water in a bath.

Linear decay

Linear decay

  • Linear decay is when something decreases by a steady amount over set time periods.
    • E.g. pulling the plug out of a bath will reduce the volume of water in the bath by a set amount each second.
Exponential decay

Exponential decay

  • Exponential decay is when something decreases by a multiplier (or percentage) over set time periods.
Exponential decay example

Exponential decay example

  • A car costs $10,000 when it's new. The value of a car reduces by 10% every two months.
    • After two months, its value has decreased by 10%. It is now worth $10,000 × 0.9 = $9,000.
    • After another two months, it is worth $9,000 × 0.9 = $8,100.
    • After another two months, it is worth $8,100 × 0.9 = $7,290.
    • After another two months, it is worth $7,290 × 0.9 = $6,561.
Jump to other topics
1

Proof

2

Algebra & Functions

2.1

Powers & Roots

2.2

Quadratic Equations

2.3

Inequalities

2.4

Polynomials

2.5

Graphs

2.6

Functions

2.7

Transformation of Graphs

2.8

Partial Fractions (A2 Only)

3

Coordinate Geometry

4

Sequences & Series

5

Trigonometry

6

Exponentials & Logarithms

7

Differentiation

8

Integration

9

Numerical Methods

10

Vectors

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