Question

True or False: For the depreciation formula, A = C(1 - r)t, the A value will always be greater than the C value.

Answer 1

Answer: False

"Depreciating" means "going down", so the value is decreasing. The value of A will always be smaller than C. For example, if the item is worth $100 today and it drops to $80, then it depreciates in value. In this example, C = 100 and A = 80 so A > C is false