alleryStart learning →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_
Keep practising Finance, growth and decay
Browse all Finance, growth and decay questions for ECZ Grade 12 School Certificate, or explore more Mathematics topics.
Related questions
Sort the two depreciation methodsA sum of 1000 earns 10 percent a year, compounded once a year. What is it worth after 2 yeA machine worth 8000 loses 25 percent a year on a reducing-balance basis. What is it worthA sum of 5000 earns 8 percent a year in simple interest for 3 years. What is the accumulatSimple interest is worked out on which amount only?