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What is the depreciated value after n years using declining balance method?

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in Farm Machinery by (38.9k points)
What is the depreciated value after n years using declining balance method?

(a) D = P(1-r)^n

(b) D = P(1/r)^n

(c) D = P(1*r)^n

(d) D = P(1+r)^n

The question was asked by my college director while I was bunking the class.

My doubt is from Disc Plough topic in portion Tillage, Disc Plough & Numericals of Farm Machinery

1 Answer

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Best answer
The correct choice is (a) D = P(1-r)^n

Easiest explanation: In this method, a uniform rate is used for each year to the remaining values, including salvage value of the machine. Depreciation amount is different for each year, during machine life.

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