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 $\boxed{V_t = V_0 (1 - r)^t}$.

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 $\boxed{V_t = V_0 (1 + r)^t}$.