Support · Mathematics Standard 11–12 – Year 12 – Standard 1 · Depreciation and loans
Support Explain the similarities and differences between the declining balance formula and the compound interest formula
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.
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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
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Examine compound interest for up to 3 time periods using repetition of the formula for simple interest
Stage 5 · Financial mathematics B Draft mapping
- Interactive toolStarterMathsisfun: Compound interestUse it for: Compound vs simple interest with tables and a calculator.
Compare simple interest with compound interest in practical situations
Stage 5 · Financial mathematics B Draft mapping
- Interactive toolStarterMathsisfun: Compound interestUse it for: Compound vs simple interest with tables and a calculator.
- WorksheetDrillKuta free worksheet: Simple and compound interestUse it for: Printable skills-practice sheet with answer key on simple and compound interest; good for drill or homework.