Episode 9 — Finance Growth and Decay

Simple Depreciation

Learners will be able to:

• Identify the concept of depreciation and its causes in assets over time. • Explain the difference between simple depreciation and other methods of depreciation. • Calculate the depreciated value of an asset using the formula A = p - i*n. • Apply the formula for straight-line depreciation to find the book value of an asset after a specified number of years. • Interpret the meaning of each component in the formula A = p - i*n, including the rate of depreciation (i) and the initial or present value (p).