math 213

posted by .

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

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Business Math

    Consider a system of notebook computers for a college math laboratory. The set of computers costs $10,000 and will be salvaged for $2,000 at the end of a 3-year period. Prepare a depreciation schedule using a 150%-declining balance …
  2. business math

    Consider a system of notebook computers for a college math laboratory. The set of computers costs $10,000 and will be salvaged for $2,000 at the end of a 3-year period. Prepare a depreciation schedule using a 150%-declining balance …
  3. Business Math

    (DEPRECIATION SCHEDULE A) A. A $1200 postage printing system depreciated using the straight-line method over 4-years. In your depreciation schedule, give the following information for each year: 1.The year's depreciation 2.The accumulated …
  4. Business Math

    (DEPRECIATION SCHEDULE E) E.Office furniture for a set of executive suites costs $12,000.00 and should be replaced after 5-years. The salvage value is $3,000. Prepare a depreciation schedule using a double-declining balance rate for …
  5. Math

    Consider a system of notebook computers for a college math laboratory. The set of computers costs $10,000 and will be salvaged for $2,000 at the end of a 3-year period. Prepare a depreciation schedule using a 150%-declining balance …
  6. accounting-depreciation

    state-of-the-art MRI machine to be purchased on 01-01-09 for a cost of $1,250,000 with a useful life of 6 years and an expected salvage value of $35,000. I need to calculate depreciation for the entire 6 year period using SL, SYD, …
  7. math

    Assume depreciation is the same each month. Write a problem involving depreciation and solve it. Where do I start?
  8. math

    using problem 17-21 calculate the first 2 years depreciation assuming the units of production method. this machine is expceted to produce 120,000 units. in year 1 it produced 19,000 units and in year 2 38,000 units problem 17-21 Jim …
  9. math

    using problem 17-21 calculate the first 2 years depreciation assuming the units of production method. this machine is expceted to produce 120,000 units. in year 1 it produced 19,000 units and in year 2 38,000 units problem 17-21 Jim …
  10. Visual Basic...Please help!

    Design and develop a simple system that computes the Depreciation cost of the item (D). Takes as input the purchase Price of an item (P), its expected number of years of Service (S), and Yearly depreciation for the item (Y). Use the …

More Similar Questions