Join Curt Frye for an in-depth discussion in this video AMORDEGRC: Calculating depreciation using a depreciation coefficient , part of Excel 2010: Financial Functions in Depth.
Different countries have different methods of calculating depreciation.…Excel includes the AMORDEGRC function for use with French accounting rules.…In this case you can assign the depreciation coefficient based on the…economic life of an asset.…So for this function we have the cost argument and that is simply the cost and…because we're using French accounting rules I have the currency denomination as Euros. …Then we need to know the date the asset was purchased, the end of the…first period, then the salvage value in this case 10,000 Euros.…
The period for which we're calculating our depreciation, and then the rate,…and the rate is something that your accountant will know based on the economic life of the asset.…There is a table that's published where you can look at that.…And then finally we have the basis, and the basis is how you count days…and months in a year.…So for example in the US, investment banks typically use a 30-day month and 12…months a year or 360 day a year.…In this case option number four is the European method so I've used that as the…
- Analyzing loans, payments, and interest
- Discovering the interest rate of an annuity
- Determining depreciation using the straight line, declining balance, double-declining balance, and other methods
- Calculating the future value of an investment with variable returns
- Finding the discount rate of a security
- Converting between fractional prices and decimal prices
- Determining the yield of securities that pay interest periodically
Skill Level Intermediate
Q: Where can I learn more about Excel formulas?
A: Discover more on this topic by visiting Excel formulas on lynda.com.
Managing and Analyzing Data in Excel 2010with Dennis Taylor1h 32m Appropriate for all
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 5s
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