Formula for annual depreciation rate.

Q.  If L is the value of equipment at the end of its useful life, n is the number of years of useful life equipment and P is the initial cost than the annual depreciation rate is given by
- Published on 06 Oct 15

a. ( P - L ) / n
b. ( p - n ) / L
c. ( L - n ) / P
d. n / ( L - P )

ANSWER: ( P - L ) / n

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