Join Curt Frye for an in-depth discussion in this video SLN: Calculating depreciation using the straight-line method, part of Excel 2010: Financial Functions.
The most straightforward method you can use to calculate depreciation is the…straight line method.…As the name implies, the straight line method assigns depreciation evenly over…the economic life of the asset.…The starting amount is the asset's purchase price and ending value is the…asset's salvage value.…If your asset has an economic life of 10 years and a salvage value of 0 for…example, you will depreciate by 10% each year until its value reaches 0.…To calculate straight line depreciation, you use in the SLN function.…The SLM function calculates the amount of depreciation for a given period…which is usually a year.…
And the function takes three arguments. Those are the initial cost, the salvage…value which is the amount at which you could sell the item for scrap, and then…the economic life, which for a computer is assumed to be 5 years.…So let's go ahead and create the formula.…So clicking in cell B11, =sln, which is our functions, and a left parenthesis.…We have the cost which is in cell b5. Type a comma.…
- 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 Intermediate
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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