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

Asset loses value by same % each period

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

Salvage/current/book value

Purchase price at $n = 0$

Depreciation rate (as decimal)

Number of time periods

0.25 (divide by 100)

Compound interest in reverse

Decreases (% applies to reduced value)

Use root (root matches power)