Hour of Math · SS3 · Unit SSNP9

Depreciation: Compound Growth in Reverse

Distinguish reducing-balance from straight-line depreciation, apply $V = P\left(1 - \frac{R}{100}\right)^T$ and $V = P\left(1 - \frac{RT}{100}\right)$ to find book value, and find the depreciation rate from the initial and final values.

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