1.5.5

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

1Number

1.1Place Value

1.2Factors & Multiples

1.3Operations

1.4Fractions, Decimals & Percentages

1.5Growth & Decay

1.6Measurements & Units

1.7Accuracy

2Algebra

3Ratio, Proportion & Rates of Change

4Geometry & Measures

5Probability

6Statistics

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