Watch out
Using simple interest for repeated change.
Scottish National 5 Mathematics
National 5 Maths Appreciation and depreciation
Model repeated percentage change, including compound interest, appreciation and depreciation.
Formula reference
Check the National 5 rules and formulae linked to this topic.
Which method?
Match exam clues to a suitable method.
Before you start
- Write the annual multiplier as 1 + r for an increase or 1 − r for a decrease.
- Store the full multiplier calculation and round money only at the final answer.
- Read the command word, record the units or requested form, and make the final answer match it.
Explanation
Appreciation and depreciation is an assessed part of Scottish National 5 Mathematics in the number area. Model repeated percentage change, including compound interest, appreciation and depreciation.
Write the annual multiplier as 1 + r for an increase or 1 − r for a decrease.
Raise the multiplier to the number of repeated changes.
Round money or measurements only at the end.
The interactive bank below mixes direct skills, reverse questions, interpretation and contextual reasoning rather than repeating one number pattern.
Key formulae and rules
- final value = initial value x multipliern
Check
Apply the multiplier to your original value; it should reproduce the stated final value before rounding.
Exam tip
Show the number rule or multiplier used, retain exact values where requested and round only once at the end.
Calculator tip
Store the full multiplier calculation and round money only at the final answer.
Worked examples
Worked example 1
Appreciation and depreciation worked example
£500 gains 4% interest each year for 3 years.
- Multiplier = 1.04
- 500 × 1.04³ = 562.432
Answer: £562.43
Watch out
- Using simple interest for repeated change.
- Rounding after each year.