Episode 3 — Finance Growth and Decay

Compound Depreciation Question 1

Learners will be able to:

• Calculate the value of an asset using the compound depreciation method. • Apply the formula a = p(1 - i)^n to find the final value of an asset after n years, where i is expressed as a decimal. • Use a negative value for i in the formula to indicate compound depreciation. • Interpret the meaning of the exponent (power) in the formula and apply it correctly. • Solve problems involving compound depreciation using a calculator.