# DepreciationReducingBalanceRate ( Cost ; ResidualValue ; NoYrsDepreciation )

Returns the annual rate as a % of depreciation when using the Reducing Balance method of calculationg depreciation

 Ed Bullock Camise Solutions Limited http://www.camise.co.uk

Sample input:
DepreciationReducingBalanceRate ( 11000 ; 1000 ; 5)
Sample output:
38.10%

Function definition: (Copy & paste into FileMaker's Edit Custom Function window)

Returns the annual rate as a % of depreciation when using the Reducing Balance method of calculating depreciation. i.e. the asset loses value quicker in the early years rather than spread equally throughout its usable life.

Enter the cost of the asset
Enter the residual value of the asset (scrap value after its usable life in years, must be greater than 0)
Enter the number of years of depreciation (usable life of the asset)

Returns the % per year of depreciation of the balance of the value of the asset

Example:

Cost of asset: 11,000
Residual Value: 1,000
Years of Depreciation: 5

DepreciationReducingBalanceRate ( 11000 ; 1000 ; 5) = 38.1%

This can now be used to find the value of the asset over its usable life

Yr1: 11,000 - 38.1% = 6,809
Yr2: 6,809 - 38.1% = 4,214.77
Yr3: 4,214.77 - 38.1% = 2,608.94
Yr4: 2,608.94 - 38.1% = 1,614.94
Yr5: 1,614.94 - 38.1% = 999.65 (approx residual value)