Question
How to calculate annual rate of depreciation
Answers
GPT 3.5
To calculate the annual rate of depreciation, you need to know the initial value of the asset, the final value of the asset, and the number of years it took for the asset to depreciate.
The formula to calculate the annual rate of depreciation is:
Annual Rate of Depreciation = (Initial Value - Final Value) / Number of Years
For example, let's say you bought a machine for $10,000 and after 5 years, its value decreased to $4,000. The calculation would be:
Annual Rate of Depreciation = ($10,000 - $4,000) / 5
= $6,000 / 5
= $1,200
Therefore, the annual rate of depreciation is $1,200.
The formula to calculate the annual rate of depreciation is:
Annual Rate of Depreciation = (Initial Value - Final Value) / Number of Years
For example, let's say you bought a machine for $10,000 and after 5 years, its value decreased to $4,000. The calculation would be:
Annual Rate of Depreciation = ($10,000 - $4,000) / 5
= $6,000 / 5
= $1,200
Therefore, the annual rate of depreciation is $1,200.