Depreciation

8 Responses

  1. THIS SUCKS U NEED QUARTERLY COMPOUNDED DEPRECIATION
    other than that its cool

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  2. sean bean says:

    one does not simply change the website.

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  3. Shaun says:

    Okay, seen as you’ve supplied all the information on how a retard can calculate a given set of numbers, could you tell viewers how one obtains the “given percentage” of depreciation, you’ve not included how one is suppose to work out this percentage, but you’ve given the percentages then told people how to calculate it from there … sigh

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    • Author says:

      I think I see what you mean. The percentage is always an assumed value. You always have a record about how the original value depreciate over time i.e the percentage.

      I think it will be necessary to include this part so thanks for the suggestion. In the car example above to calculate the percentage of depreciation over time you must have some record of how the prices have changed in the past. It is very easy. For example

      In year 1 the price changed from £25000 to £20500
      In year 2 it then changed from £20500 to £16810
      In year 3 it then changed from £16810 to £13684

      Using this past record we can work out by what percentage the value of the car decreases each year. Simply divide the current year value by the previous year and then subtract it from 1 since it is depreciation and multiply that by 100 for example;

      In year 2 the price dropped from £20500 to £16810 so;
      16810/20500 = 0.82, so; 1-0.82 = 0.18 (Note: 80% = 0.82 and 0.18 = 18%). Now multiply 0.18 by 100 to get 18%. You can see that it is the same as in the car example.

      You can also use the depreciation formula derived above by rearranging it to find r%. You will need to have a few other values as well such as the initial value of the car for example. the depreciated value for example the value of the car in year 5.

      I will definitely include this so thanks for the suggestion.

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  4. Bob says:

    Hey thanks man. And these guys above a just being dicks. I thought it was pretty good and helped a lot.
    Thanks again

    Like or Dislike: Thumb up 7 Thumb down 1

  5. Louise says:

    Is there a way to solve for n without using logs if given the initial value,depreciation value, and depreciation % ?

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  6. louise says:

    i dont get how it becomes 0.82

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