Savings, Investment, and Depreciation
Ages 16–18Difficulty adapts to you
Savings, Investment, and Depreciation
Savings and investments can grow, but the result depends on rate, time, deposits, fees, inflation, and risk. Depreciation models the reduction in an asset's value. A mathematical answer should state the model used and its assumptions.
Your goals
- ✓You can model growth, returns, risk, and the falling value of assets.
- ✓You can use Savings, Investment, and Depreciation, model correctly.
- ✓You can use the definitions, units, assumptions, and examples to check your answer.
Words to know
- Savings, Investment, and Depreciation:
- Model growth, returns, risk, and the falling value of assets.
- model:
- A rule or representation used to describe a situation and make a prediction.
Examples
- 1Saving ₦15,000 monthly for 12 months without interest gives ₦180,000.
- 2An item bought for ₦500,000 that loses 20% of its value is worth ₦400,000 after one depreciation period.
Check these
- • Do not skip the meaning of a term or give a result without explaining what it means.
- • Keep every number, symbol, label, and unit in its correct place.
- • Show enough working to check how you reached your answer.
Helpful habits
- • Read the whole question before choosing what to do.
- • Show one clear step at a time and check each step.
- • If you are stuck, draw a model, try smaller numbers, or revisit the example.
Now try your own
Create your own savings, investment, and depreciation example, solve it, and explain how you checked it.
Professor Wise Owl
Wisdom & Understanding“A wise learner asks questions. Be curious!”