Before starting here, make sure you're comfortable with Compound Interest and Recurrence Relations from Unit 3. This topic applies those same tools to investments, depreciation and loan planning.
Growing Money
1
Ready โ
Compound Interest Investments
Apply compound interest to investment accounts, find the future value, compare rates, and work out how long until a target is reached.
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2
Ready โ
Shares & Dividends
How share investments work, calculate dividend yield, compare returns, and evaluate whether an investment is performing well.
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Depreciation
3
Ready โ
Straight-Line Depreciation
Assets that lose the same dollar amount every year. Find the value at any point in time, or how long until it reaches scrap value.
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4
Ready โ
Reducing Balance Depreciation
Assets that lose a percentage of their current value each year, like a car or computer. Same structure as compound interest but going down.
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Loans & Financial Planning
5
Ready โ
Loan Repayments
Plan repayments on reducing balance loans, build amortisation tables, find total interest, and see how extra repayments save money.
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6
Ready โ
Financial Planning
Combine investments, loans and annuities to plan for a goal, saving for a house deposit, planning retirement, or comparing financial products.
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Test Yourself, Escape Rooms
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Escape Room
Market Vault
FV ยท compounding periods ยท interest earned ยท finding n
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Escape Room
Trading Floor
Dividend yield ยท P/E ratio ยท capital growth ยท total return
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Escape Room
Car Yard
Annual depreciation ยท V = P โ Dn ยท finding n and P
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Escape Room
Tech Drop
V = P(1โr)โฟ ยท recurrence ยท depreciation rate
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Escape Room
Dream Home
Monthly interest ยท amortisation ยท total interest ยท extra repayments
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Escape Room
Life Plan
FV annuity ยท savings goals ยท PMT ร [(1+r)โฟโ1]/r
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