Declining-Balance Depreciation (HSC SSCE Mathematics Standard): Flashcards

Asset loses value by same % each period

Decreases while % stays constant

$S = V_0(1 - r)^n$

Salvage/current/book value

Purchase price (initial value)

Depreciation rate per period (decimal)

Number of time periods

Divide by 100

Rearrange: $V_0 = \frac{S}{(1-r)^n}$

Take $n$th root, solve for $r$