# formula for depreciation

• Sep 4th 2009, 02:48 PM
dlewislou
formula for depreciation
I am looking for someone who can help me find this answer: Develop a general formula for depreciation defining what each variable in the formula stands for. (Hi)
• Sep 4th 2009, 03:35 PM
masters
Quote:

Originally Posted by dlewislou
I am looking for someone who can help me find this answer: Develop a general formula for depreciation defining what each variable in the formula stands for. (Hi)

Hi dlewislou,

There is a general formula for straight line depreciation.

$V=P(1-r)^n$

where

V = Future Value
P = Present Value
r = Depreciation Rate
n = Number of Years Depreciated
• Sep 4th 2009, 08:25 PM
Wilmer
Masters, isn't "straight line" depreciation simply cost / years?
Like, 10000 depreciated over 5 years = 10000/5 = 2000 per year?
• Sep 4th 2009, 09:51 PM
mr fantastic
Quote:

Originally Posted by dlewislou
I am looking for someone who can help me find this answer: Develop a general formula for depreciation defining what each variable in the formula stands for. (Hi)