6.2.2

Depreciation

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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.

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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.
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Exponential decay

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

1Proof

2Algebra & Functions

2.1Powers & Roots

2.2Quadratic Equations

2.3Inequalities

2.4Polynomials

2.5Graphs

2.6Functions

2.7Transformation of Graphs

2.8Partial Fractions (A2 Only)

3Coordinate Geometry

4Sequences & Series

5Trigonometry

6Exponentials & Logarithms

7Differentiation

8Integration

9Numerical Methods

10Vectors

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