Depreciation

• Apr 3rd 2009, 12:45 PM
doodle08
Depreciation
Develop a general formula for depreciation defining what each variable in the formula stands for.
• Apr 3rd 2009, 03:35 PM
e^(i*pi)
Quote:

Originally Posted by doodle08
Develop a general formula for depreciation defining what each variable in the formula stands for.

$A_t = A_0(1-k)^t$

$A_t$ = Value at time t
$A_0$ = Initial value (at t=0)
$k$ = A positive constant measuring the drop
$t$ = time since t=0
• Apr 3rd 2009, 03:38 PM
stapel
Quote:

Originally Posted by doodle08
Develop a general formula for depreciation defining what each variable in the formula stands for.

There are many different types of depreciation: straight-line, declining-balance, etc. Which one(s) are you supposed to be working with?

Thank you! :D