Excel

AMORDEGRC: Excel Formulae Explained

How do you use AMORDEGRC in Excel?

The "AMORDEGRC" function in Microsoft Excel is used to calculate the depreciation of an asset for a given period of time. The function takes into account the asset's purchase price, salvage value, and number of years in use to calculate the depreciation expense for a given year. This information can be useful for tracking the depreciation of an asset over time and calculating the total depreciation expense for the asset.

What is the syntax of AMORDEGRC in Excel?

The syntax of the AMORDEGRC function in Excel is as follows:

=AMORDEGRC(rate,nper,pmt,pv,fv,type)

Where:

rate is the interest rate per period nper is the number of periods pmt is the payment per period pv is the present value fv is the future value type is the payment type (0 for regular payments, 1 for payments at the beginning of the period, 2 for payments at the end of the period)

What is an example of how to use AMORDEGRC in Excel?

The Excel function AMORDEGRC calculates the depreciation for an asset using the straight-line method over a specified number of periods. The function requires three arguments: the initial cost of the asset, the salvage value of the asset, and the number of periods over which the depreciation is to be calculated.

For example, the following formula calculates the depreciation for an asset that cost $10,000, has a salvage value of $2,000, and is to be depreciated over 5 years:

=AMORDEGRC(10,000,2,000,5)

The function returns a depreciation of $1,600 over the 5-year period.

When should you not use AMORDEGRC in Excel?

There are several occasions when you should not use the AMORDEGRC function in Excel. One instance is when you want to calculate the average of only the positive values in a column. In this scenario, you would use the AVERAGE function instead of AMORDEGRC. Another time you should not use AMORDEGRC is when you want to calculate the weighted average of a column of numbers. In this situation, you would use the AVERAGE function with the WEIGHTED argument set to TRUE.

What are some similar formulae to AMORDEGRC in Excel?

AMORDEGRC is an Excel formula used to calculate the depreciation of an asset using the straight-line depreciation method. The formula is written as follows:

AMORDEGRC(cost, salvage, life, period)

The cost is the initial cost of the asset, the salvage is the value of the asset at the end of its life, the life is the number of periods over which the asset will be depreciated, and the period is the period of time for which the depreciation is being calculated.

There are a number of other formulae that can be used to calculate depreciation using different methods. The most common alternative formulae are:

DB: The Double-Declining Balance depreciation formula is written as follows:

DB(cost, salvage, life, period)

The cost is the initial cost of the asset, the salvage is the value of the asset at the end of its life, the life is the number of periods over which the asset will be depreciated, and the period is the period of time for which the depreciation is being calculated.

SL: The Straight-Line depreciation formula is written as follows:

SL(cost, salvage, life, period)

The cost is the initial cost of the asset, the salvage is the value of the asset at the end of its life, the life is the number of periods over which the asset will be depreciated, and the period is the period of time for which the depreciation is being calculated.

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