Post a New Question

math 213

posted by on .

The effect of depreciation can be computed using a formula similar to the formula for compound interest.
a. Assume depreciation is the same each month. Write a problem involving depreciation and solve it.

b. Develop a general formula for depreciation defining what each variable in the formula stands for.

  • math 213 - ,

    This is not straight line depreciation but a constant percentage depreciation per month.

    let value after a month be d times value the month before. (like 0.97 or something)

    Then value after n months = original value * d^n

    for example if I buy a $500 appliance
    and d = .97 per month
    then after 2 years
    value = 500(.97)^24
    = 500(.481)
    = $ 241

Answer This Question

First Name:
School Subject:

Related Questions

More Related Questions

Post a New Question