Calculating Depreciation Methods

jewels.p

To calculate the percentage of reducing balance depreciation what is the simplest way to remember this. In my Osbourne Book it goes on about square roots and fourth roots but I have no idea having left school a long time ago. Is there a way to do this formula without using roots?

Thanks

PGM

If Asset value was 100 in 08 and 90 in 09.

Then depreciation was 10.

10 over 100 is 10%.



What information does a question give you?

jewels.p

It says the formula is r = 1 - n (square root sign) s/c

r = % rate of depreciation
n = number of years
s = residual value
c = cost of asset

No. of years depreciation = 4
Residual Value = £4,000
Cost of Asset = £20,000