True or False: For the depreciation formula, A = C (1 - r) t, the A value will always be greater than the C value.

Question

Chanel Baxter

Mathematics

9 January, 15:21

True or False: For the depreciation formula, A = C (1 - r) t, the A value will always be greater than the C value.

+3

Answers (1)

Know the Answer?

Shania King · Answer 1

Answer: False

"Depreciating" means "going down", so the value is decreasing. The value of A will always be smaller than C. For example, if the item is worth $100 today and it drops to $80, then it depreciates in value. In this example, C = 100 and A = 80 so A > C is false