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Is there a way to use the depreciation formula with changing rates of depreciation?

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    • Thread Starter

    Howdy. I have been using the attached formula but unsure if this can be changed to be used for when a depreciation rate changes.


    A car costing £6500 depreciates the first year at 35% and 15% the second year. Calculate the value of the car after two years.

    If the rate was the same then I could just use the formula.

    I know I can just find out £6500 x (0.65 x 0.85) but is there a formula like the attached one that can be used for these type of questions?
    Attached Images

    You really shouldn't try and memorise a formula. You should understand why it works so that you wouldn't need to ask these questions (not a personal attack or anything ).
    • Thread Starter

    (Original post by B_9710)
    You really shouldn't try and memorise a formula. You should understand why it works so that you wouldn't need to ask these questions (not a personal attack or anything ).
    I don't think you understand my question...

    I understand the formula I am using but I don't understand the topic well enough to see if there is a different formula for using different rates of depreciation of a period of time (See example from original question).

    I am asking can the formula be used or slightly changed to help calculate multiple rates that are changing over time.

    I have tried doing things to the formula to see if I can create something that allows me to use changing rates but I haven't been able to come up with anything. That is why I am asking on here.
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