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Support · Mathematics Standard 11–12 – Year 12 – Standard 1 · Depreciation and loans

Support Model a reducing balance loan as an application of compound interest, given the interest rate per time period, with periodic repayments, using a table for up to three time periods

Resources for the prerequisite content of this dot point: earlier-stage (or earlier sub-level) dot points in the same strand that students usually need first. Use these to fill gaps before or alongside the core lesson.

Prerequisite links are draft mappings generated from the syllabus structure (earlier stage, same strand, closest content). They are being reviewed by teachers. Spot a poor match? Tell us.

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Prerequisite dot points

Use the compound interest formula to establish the depreciation formula S = V_0(1 - r)ⁿ where S = salvage value, V_0 = initial value of the asset, r = depreciation rate per time period and n = number of periods

Stage 5 · Financial mathematics B Draft mapping

No checked resources on this prerequisite dot point yet.

Establish and use the formula I = Prn to find simple interest where I =simple interest, P =principal, r =interest rate per time period and n = number of time periods

Stage 5 · Financial mathematics A Draft mapping

Establish and use the formula FV = PV(1 + r)ⁿ to find compound interest where FV = future value of the investment, PV = present value of the investment, r = interest rate per time period and n = number of time periods

Stage 5 · Financial mathematics B Draft mapping