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NSWMaths Standard 2Year 12: Financial Mathematics

Quick questions on Straight-line and declining-balance depreciation for HSC Maths Standard 2

1short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is the declining-balance schedule, stage by stage?
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Declining-balance value can be read straight off V=P(1r)nV = P(1 - r)^n, but a question may instead ask you to complete a year-by-year schedule, and seeing the schedule built makes the formula concrete. The key move is that each year's closing value becomes the next year's opening value: you take 25%25\% off, carry the remainder down, and repeat. The four panels below build the schedule for the $56000 Hilux at a 25%25\% declining-balance rate.

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