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# 1.3 Predicting Future Values for Depreciation Systems

Note: if you cannot remember how to model each of these types of depreciation using recurrence relation formulas and how they appear graphically, revise notes for 1.2 Forms of Depreciation.

### Predicting Values for Flat Rate Depreciation

• You may notice from the flat rate depreciation formula that this represents a system that increases by a value of d per unit in time (month, year, etc.), starting from the initial value; A_{0}. Thus, we can also express this relationship as the linear formula:

A=A_{0}+d t

Where t is the number of periods which have passed.

• This is equivalent to a linear relation with a slope of d, and a y-intercept of A_{0}.
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