Coaching Centre
Chapter 2: Investments and Depreciation Notes
Compound interest with any compounding period, present value, simple versus compound growth in graphs and spreadsheets, inflation and appreciation, shares and dividends, and declining-balance depreciation.
Sections
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2A Future value and present value Mastered
The compound interest formula FV = PV(1 + r)^n with any compounding period, finding the rate and number of periods, the effect of compounding more often, and working backwards to find present value.
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2B Comparing investments with graphs and spreadsheets Mastered
Simple and compound interest side by side in tables, graphs and spreadsheets, spreadsheet formulas with absolute cell references, and comparing savings accounts, term deposits, shares and property.
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2C Inflation and appreciation Mastered
Using the compound interest formula to model inflation and appreciation, finding past and future prices, and comparing an interest rate with inflation to judge purchasing power.
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2D Shares, dividends and capital gains Mastered
Buying and selling shares with brokerage, dividends and dividend yield, capital gains and losses, total return, and reading share price graphs.
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2E Declining-balance depreciation Mastered
The declining-balance formula S = V0(1 - r)^n, depreciation tables and graphs, finding the rate or the time, and comparing declining-balance with straight-line depreciation.