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    5g-Depreciation Lesson

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    Depreciation is the loss in value of an asset over time. The rate of depreciation (r) is represented as a negative percentage. To calculate the future value of an asset given its present value, rate of depreciation, and number of periods, use the formula FV = PV(1 + r)^n, where PV is the present value, r is the negative rate of depreciation, and n is the number of periods. For example, if a truck is originally purchased for $32,999 and depreciates 16% per year, its value in 6 years can be calculated using this formula.

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    5g-Depreciation Lesson

    Uploaded by

    api-307744300
    273 views1 page
    Depreciation is the loss in value of an asset over time. The rate of depreciation (r) is represented as a negative percentage. To calculate the future value of an asset given its present value, rate of depreciation, and number of periods, use the formula FV = PV(1 + r)^n, where PV is the present value, r is the negative rate of depreciation, and n is the number of periods. For example, if a truck is originally purchased for $32,999 and depreciates 16% per year, its value in 6 years can be calculated using this formula.

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    Depreciation is the loss in value of an asset over time. The rate of depreciation (r) is represented as a negative percentage. To calculate the future value of an asset given its present value, rate of depreciation, and number of periods, use the formula FV = PV(1 + r)^n, where PV is the present value, r is the negative rate of depreciation, and n is the number of periods. For example, if a truck is originally purchased for $32,999 and depreciates 16% per year, its value in 6 years can be calculated using this formula.

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    273 views1 page

    5g-Depreciation Lesson

    Uploaded by

    api-307744300
    Depreciation is the loss in value of an asset over time. The rate of depreciation (r) is represented as a negative percentage. To calculate the future value of an asset given its present value, rate of depreciation, and number of periods, use the formula FV = PV(1 + r)^n, where PV is the present value, r is the negative rate of depreciation, and n is the number of periods. For example, if a truck is originally purchased for $32,999 and depreciates 16% per year, its value in 6 years can be calculated using this formula.

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    IB Math Studies I

    Chapter 5(G) - Depreciation


    [ notes ]

    5G: DEPRECIATION

    r is less than 1
    when this happens

    Depreciation is the loss in value


    over time.

    FV = Future Value
    PV = Present Value

    r = rate of depreciation (r is negative)


    n = number of periods

    Example: The value of a particular truck depreciates 16% per


    year. How much will this model be worth in 6 years if
    it was originally purchased for $32,999?

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