Annuity and depreciation

According to linguistic terms, an annuity is an annual. Payments to the annuity system is the system of installment payments (installments) with interest periodically (every year) with a total amount of payment is always fixed.

Depreciation or depreciation is the decline in value of assets due to the increased age of fixed assets due to obsolescence or sustained as a result of new technologies.

1. Straight-line depreciation method
According to the straight-line method of depreciation is calculated by evenly dividing the net asset value of the residual value. Residual value is the value that is contained in the following assets can not be enabled again.

formula:

P = HP - NR / TU

Description:
HP = cost
NR = residual values
TU = estimated age
P = depreciation

2. Depreciation according to the book value of fixed rate
This method is also called the declining balance method for depreciation decreases periodically over the life of the estimated assets.

Book value = cost - accumulated depreciation

3. Depreciation according to the method of the total number of years

Depreciation year i = i / Sn (HP-NR)

Description:
P = depreciation
I = annual number value behind
Sn = the total number of annual
HP = cost
NR = residual values
n = length of depreciation

4. Depreciation according to production method
Depreciation can be calculated based on the estimated useful life of the asset based on the number of units or units of production. Therefore, the depreciation each year can be calculated after production operations.

U = HP-NR/TP

Pi = U x Ti

Description:
TP = total estimated production
Pi = depreciation in the i
U = depreciation per unit
Ti = total production in the i.