### Flat Rate Depreciation

**Flat rate depreciation**occurs when the value of an asset decreases by a fixed amount every period (i.e. no interest occurs).- Graphs of flat rate depreciation are
**linear**. - The recurrence relation formula describing flat rate depreciation is:

A_{n+1}=d+A_{n}

Note: as this is depreciation: d<0. Consequently, any graphs showing flat rate depreciation will have a **negative slope**.