How To Work Out Compound Interest Depreciation Complete Guide

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how to work out compound interest depreciation. For monthly compounding the periodic interest rate is simply the annual rate divided by 12 because there are 12 months or periods during the year. R Rate of interest.

Straight Line Depreciation Straight Lines Method Line
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The trick to using a spreadsheet for compound interest is using compounding periods instead of simply thinking in years. N Number of Periods. FV PV 1r n.

An amount of money was invested for 8 years.

A P where A is the final amount P is the principal r is the rate of interest compounded yearly and n is the number of years. And by rearranging that formula see Compound Interest Formula Derivation we can find any value when we know the other three. Each year the value of the van depreciates by 25. FV PV 1r n.