Depreciation and appreciation formula

Here are the formulas for depreciation and appreciation: Depreciation Formula Depreciation refers to the decrease in the value of an asset over time. The formula for calculating the value of an asset after depreciation, assuming a constant rate, is: V_t = V_0 (1 - r)^t Where: • V_t is the value of the asset after t periods. • V_0 is the initial value of the asset. • r is the annual rate of depreciation (expressed as a decimal). • t is the number of periods (usually years). The depreciation formula is V_t = V_0 (1 - r)^t. Appreciation Formula Appreciation refers to the increase in the value of an asset over time. The formula for calculating the value of an asset after appreciation, assuming a constant rate, is: V_t = V_0 (1 + r)^t Where: • V_t is the value of the asset after t periods. • V_0 is the initial value of the asset. • r is the annual rate of appreciation (expressed as a decimal). • t is the number of periods (usually years). The appreciation formula is V_t = V_0 (1 + r)^t. What's next? 🤔