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

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

E.g.

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

2. 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 ).
3. (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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Updated: May 30, 2016
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