Question

If the value of the article decreases, so the rate of depreciation 'R' is taken as what?

Answer 1

Step-by-step explanation:

For example, if the present value of an article is decreasing by a fixed rate r% per year, then in the formula r is replaced by – r. As the price of a freezer is ...

Answer 2

Given : value of the article decreases,

To Find : rate of depreciation 'R' is taken as

Solution:

rate of depreciation 'R' is taken as -ve

P = Present value

A = Value after n period of times

r = rate of depreciation in %

A  =  P(1 - r/100)ⁿ

-ve sign in formula shows rate of depreciation  

if value of article increases

Then A = P( 1 + r/100)ⁿ

and r = rate of appreciation

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