Given:
depreciation rate: 18%
Value of the car : 20,000
Age of the car : 4 years.
The depreciation is based on the current value of the car. Therefore, the amount of depreciation varies.
yr Beginning Value Dep. Rate Depreciation Ending Value
1
20,000.00 18%
3,600.00
16,400.00
2
16,400.00 18%
2,952.00
13,448.00
3
13,448.00 18%
2,420.64
11,027.36
4
11,027.36 18%
1,984.92
9,042.44
The current value of a car bought 4 years ago is 9,042.44
Beginning value : purchased amount on 1st year. then, ending balance of the previous year from 2nd year onwards.
Depreciation : Beginning value * depreciation rate
Ending value : Beginning value - depreciation
