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What does the straight-line method of depreciation take off each year?
AA growing amount
BA shrinking amount
CA constant amount
DA doubling amount
Answer & Solution
Correct answer: C. A constant amount
1. Depreciation is the loss in value of an asset over time.
2. In the straight-line method the value is reduced by a constant amount each year.
3. That amount is worked out on the principal amount every time, so it never changes.
4. A shrinking amount belongs to reducing-balance depreciation, which works on the reduced value instead.
_Source: Siyavula Mathematics Grade 11 (Everything Maths, CC BY 4.0), Chapter 9: Finance, growth and decay_
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