How to compute depreciation rate?

51591 views 25 replies

correct



can any one tell how they arrived the following figure (.87055) 

 

"root of .25 to the power of 10 = .87055"

 

 

 

Simple Guys,

its 1 - (Residual Value/Cost)^1/Useful Life

 

how to find root of .25 to the power of 10=.87055?

Your formula is incorrect. square root of .25 raised to the power of 10 is not .87055. 

if i purchase a computer on 01.09.13 then how to calulate the depreciation rate as on 31.03.14

If you are perfect in excel go to Financial Formulas and there you find DB and insert the following

1) Cost

2) Salavage Value

3) Life of the Asset

4) Then Automatically you get the rate of Depreication under WDV Method

 

 

Please any one can post the excell sheet for WDV depriciation for remaining years and days also

can any one tell how they arrived the following figure (.87055)    "root of .25 to the power of 10 = .87055"  

Read more at: /forum/details.asp?mod_id=5528&offset=2#.VWQlOtKqqko

Under written down value method, the rate of depreciation is computed by using the following formula:

R = [1-n√(S/C)]*100
Where, R = Rate of Depreciation

N = Expected useful life

C = Cost of an asset

 

 

If depreciation rate of SLM is not given then how we calculate depreciation rate by wdv method


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