Define the term depreciation .

Depreciation is where an item loses value over time.

True or False? Depreciation is the same as a repeated percentage decrease .

True. Depreciation is the same as a repeated percentage decrease . E.g. For an item with an original value of £200 that depreciates in value by 4% each year over a period of 6 years, its value at the end of 6 years can be calculated by finding a 4% decrease, six times in a row ( 200 x 0.96 6 ).

GCSEMathsEdexcelFoundationFlashcardsNumberSimple & Compound Interest, Growth & Decay

Simple & Compound Interest, Growth & Decay (Edexcel GCSE Maths: Foundation): Flashcards

Exam code: 1MA1

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Define the term depreciation.

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Cards in this collection (5)

Define the term depreciation.
Depreciation is where an item loses value over time.
An item that initially had a value of $P$ depreciates at a rate of $r$ % each year. Write down the equation for the value of the item after $n$ years.
An item that initially had a value of $P$ depreciates at a rate of $r$ % each year. After $n$ years the value of the item can be found by calculating $P {(1 - \frac{r}{100})}^{n}$ .
True or False?
Depreciation is the same as a repeated percentage decrease.
True.
Depreciation is the same as a repeated percentage decrease.
E.g. For an item with an original value of £200 that depreciates in value by 4% each year over a period of 6 years, its value at the end of 6 years can be calculated by finding a 4% decrease, six times in a row ( 200 x 0.96⁶).
True or False?
When a quantity grows exponentially it is increasing from an original amount by a percentage each year for $n$ years.
True.
When a quantity grows exponentially it is increasing from an original amount by a percentage each year for $n$ years.
Bacterial growth is an example of exponential growth.
(Note that other time periods are possible, i.e. seconds, hours, days, etc., instead of years.)
What is exponential decay?
When a quantity exponentially decays it is decreasing from an original amount by a percentage each year for $n$ years.
The temperature of hot water cooling down is an example of exponential decay.
(Note that other time periods are possible, i.e. seconds, hours, days, etc., instead of years.)

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