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Equation of Motion for Capital Stock Formula

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Equation of Motion for Capital Stock defines how much capital the firm has created in particular point of time. Check FAQs
Kt+1=(1-D)⋅Kt+It
Kt+1 - Equation of Motion for Capital Stock?D - Depreciation?Kt - Capital Used Today?It - Investment Today?

Equation of Motion for Capital Stock Example

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Here is how the Equation of Motion for Capital Stock equation looks like with Values.

Here is how the Equation of Motion for Capital Stock equation looks like with Units.

Here is how the Equation of Motion for Capital Stock equation looks like.

130890Edit=(1-11880Edit)⋅90Edit+1.2E+6Edit
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HomeIcon Home » Category Financial » Category Economy » Category Microeconomics » fx Equation of Motion for Capital Stock

Equation of Motion for Capital Stock Solution

Follow our step by step solution on how to calculate Equation of Motion for Capital Stock?

FIRST Step Consider the formula
Kt+1=(1-D)⋅Kt+It
Next Step Substitute values of Variables
∴ Kt+1=(1-11880)⋅90+1.2E+6
Next Step Prepare to Evaluate
∴ Kt+1=(1-11880)⋅90+1.2E+6
LAST Step Evaluate
∴Kt+1=130890

Equation of Motion for Capital Stock Formula Elements

Variables
Equation of Motion for Capital Stock
Equation of Motion for Capital Stock defines how much capital the firm has created in particular point of time.
Symbol: Kt+1
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Equation of Motion for Capital StockOpen Variable
Depreciation
Depreciation is an accounting method of allocating cost of tangible asset over useful life. Monetary value of asset decreases over time due to obsolescence. This decrease is measured as depreciation.
Symbol: D
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find DepreciationOpen Variable
Capital Used Today
Capital Used Today defines how much capital the firm has utilised today.
Symbol: Kt
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Capital Used TodayOpen Variable
Investment Today
Investment Today refers to the amount of capital invested by the business today.
Symbol: It
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Investment TodayOpen Variable

Other formulas in Microeconomics category

​Go Average Total Cost
ATC=TcQ
​Go Gross Domestic Product
GDP=PCN+GI+G+NX
​Go Rate of Inflation
R=ECPI-ICPIICPI
​Go Net Exports of Goods and Services
NX=X-M

How to Evaluate Equation of Motion for Capital Stock?

Equation of Motion for Capital Stock evaluator uses Equation of Motion for Capital Stock = (1-Depreciation)*Capital Used Today+Investment Today to evaluate the Equation of Motion for Capital Stock, Equation of Motion for Capital Stock refers to the amount of capital the firm has created during time. Equation of Motion for Capital Stock is denoted by Kt+1 symbol.

How to evaluate Equation of Motion for Capital Stock using this online evaluator? To use this online evaluator for Equation of Motion for Capital Stock, enter Depreciation (D), Capital Used Today (Kt) & Investment Today (It) and hit the calculate button.

FAQs on Equation of Motion for Capital Stock

What is the formula to find Equation of Motion for Capital Stock?
The formula of Equation of Motion for Capital Stock is expressed as Equation of Motion for Capital Stock = (1-Depreciation)*Capital Used Today+Investment Today. Here is an example- 130890 = (1-11880)*90+1200000.
How to calculate Equation of Motion for Capital Stock?
With Depreciation (D), Capital Used Today (Kt) & Investment Today (It) we can find Equation of Motion for Capital Stock using the formula - Equation of Motion for Capital Stock = (1-Depreciation)*Capital Used Today+Investment Today.
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