A quick example of how it works. Useful life of asset represents the number of periodsyears in which the asset is expected to be used by the company. Salvage value is the value of the asset at the end of its useful life.
Solve for the number of years.
Problems involving appreciation or depreciation are almost exactly the same as problems asking about compound interest. Double Declining Balance Method 2 Beginning Value Salvage ValueUseful life. Depreciation value per year. This short revision video explains the two main methods of calculating depreciation.