# Math Help - formula for depreciation

1. ## 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.

2. 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 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

3. Masters, isn't "straight line" depreciation simply cost / years?
Like, 10000 depreciated over 5 years = 10000/5 = 2000 per year?

4. 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.