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

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Mathematics

Gage Gould

4 October, 12:47

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

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Fritz · 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