Interest and Depreciation (HSC SSCE Mathematics Standard): Flashcards

Asset loses same fixed amount of value each time period

$S = V_0 - Dn$

Salvage value (current value of item)

Purchase price (original value when $n = 0$)

Depreciated amount (value lost per time period)

Number of time periods that have passed

Depreciation amount remains constant over time

Asset loses value at a uniform rate

Book value

Accounting, tax calculations, budgeting, insurance