Depreciation and More Compound Interest

This page covers depreciation calculations and provides additional compound interest examples, addressing both simple interest and compound interest GCSE foundation notes.

Key topics covered:

1. Compound interest calculation for a 10% interest rate over 4 years
2. Depreciation calculation for a car losing 29% of its value annually over 3 years

Definition: Depreciation is the decrease in value of an asset over time, often calculated as a percentage of the original value.

Example: A car bought for £15000, depreciating at 29% per year, is worth £5368.67 after 3 years.

The page emphasizes the importance of understanding the difference between appreciation (compound interest) and depreciation, both of which use similar calculation methods but with opposite effects.

Highlight: Students should pay attention to whether they need to calculate appreciation (compound interest) or depreciation, as this affects whether they add or subtract the percentage from 100%.

Compound Interest and Depreciation: GCSE Foundation Guide

This comprehensive guide covers compound interest GCSE formula and depreciation calculations, essential for GCSE foundation mathematics. It provides step-by-step examples and practice questions to help students master these important financial concepts.

Key points:

• Explanation of compound interest calculation methods
• Depreciation formula and examples
• Practice questions with detailed solutions
• Relevant for GCSE foundation level mathematics

Highlight: This guide is particularly useful for students preparing for GCSE exams, offering a range of compound interest questions with answers and depreciation problems.