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Amortization given Depreciation Rate Formula

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Amortization Period is the useful time over which the intangible cost of a machine has been spread. Check FAQs

P amort = \frac{C mach}{N wh \cdot M t}

P_amort - Amortization Period?C_mach - Initial Cost of The Machine?N_wh - Number of Working Hours Per Year?M_t - Depreciation Rate?

Amortization given Depreciation Rate Example

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Here is how the Amortization given Depreciation Rate equation looks like with Values.

Here is how the Amortization given Depreciation Rate equation looks like with Units.

Here is how the Amortization given Depreciation Rate equation looks like.

0.1389 = \frac{1000}{1200 \cdot 0.1}

0.1389min = \frac{1000}{1200 \cdot 0.1}

0.1389 = \frac{1000}{1200 \cdot 0.1}

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Amortization given Depreciation Rate Solution

Follow our step by step solution on how to calculate Amortization given Depreciation Rate?

FIRST Step Consider the formula

P amort = \frac{C mach}{N wh \cdot M t}

Next Step Substitute values of Variables

∴

P amort = \frac{1000}{1200 \cdot 0.1}

Next Step Prepare to Evaluate

∴

P amort = \frac{1000}{1200 \cdot 0.1}

Next Step Evaluate

∴

P amort = 8.33333333333333s

Next Step Convert to Output's Unit

∴

P amort = 0.138888888888889min

LAST Step Rounding Answer

∴

P amort = 0.1389min

Amortization given Depreciation Rate Formula Elements

Variables

Amortization Period

Amortization Period is the useful time over which the intangible cost of a machine has been spread.

Symbol: P_amort

Measurement: TimeUnit: min

Note: Value should be greater than 0.

Formulas to find Amortization Period

Initial Cost of The Machine

Initial Cost of The Machine is the total cost after ordering, buying, acquiring, and installment a machine.

Symbol: C_mach

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Initial Cost of The Machine

Number of Working Hours Per Year

Number of Working Hours Per Year is the total number of hours a machine has been used for production processes.

Symbol: N_wh

Measurement: NAUnit: Unitless

Note: Value should be less than 8760.

Formulas to find Number of Working Hours Per Year

Depreciation Rate

Depreciation Rate is the rate at which the machine is depreciated across the estimated productive life of the machine.

Symbol: M_t

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Depreciation Rate

Other formulas in Depreciation Rate category

Go Depreciation Rate of Machine Tool given Machining and Operating Rate

M t = (M - (W o \cdot \frac{100 + % opt}{100})) \cdot \frac{100}{100 + % mach}

Go Depreciation Rate of Machine Tool

M t = \frac{C mach}{N wh \cdot P amort}

Go Working Hours per year given Depreciation Rate

N wh = \frac{C mach}{P amort \cdot M t}

How to Evaluate Amortization given Depreciation Rate?

Amortization given Depreciation Rate evaluator uses Amortization Period = Initial Cost of The Machine/(Number of Working Hours Per Year*Depreciation Rate) to evaluate the Amortization Period, Amortization given Depreciation Rate is a method to determine the estimated time period over which the cost of the machine can be spread when the Depreciation Rate is known. Amortization Period is denoted by P_amort symbol.

How to evaluate Amortization given Depreciation Rate using this online evaluator? To use this online evaluator for Amortization given Depreciation Rate, enter Initial Cost of The Machine (C_mach), Number of Working Hours Per Year (N_wh) & Depreciation Rate (M_t) and hit the calculate button.

FAQs on Amortization given Depreciation Rate

What is the formula to find Amortization given Depreciation Rate?

The formula of Amortization given Depreciation Rate is expressed as Amortization Period = Initial Cost of The Machine/(Number of Working Hours Per Year*Depreciation Rate). Here is an example- 0.002315 = 1000/(1200*0.1).

How to calculate Amortization given Depreciation Rate?

With Initial Cost of The Machine (C_mach), Number of Working Hours Per Year (N_wh) & Depreciation Rate (M_t) we can find Amortization given Depreciation Rate using the formula - Amortization Period = Initial Cost of The Machine/(Number of Working Hours Per Year*Depreciation Rate).

Can the Amortization given Depreciation Rate be negative?

No, the Amortization given Depreciation Rate, measured in Time cannot be negative.

Which unit is used to measure Amortization given Depreciation Rate?

Amortization given Depreciation Rate is usually measured using the Minute[min] for Time. Second[min], Millisecond[min], Microsecond[min] are the few other units in which Amortization given Depreciation Rate can be measured.

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Amortization given Depreciation Rate Formula

Amortization given Depreciation Rate Example

Amortization given Depreciation Rate Solution

Amortization given Depreciation Rate Formula Elements

Other formulas in Depreciation Rate category

How to Evaluate Amortization given Depreciation Rate?

FAQs on Amortization given Depreciation Rate

Variable Name