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Finance / July 19, 2018 / Alicia Franklin

Accounting estimates the decrease in value using the information regarding the useful life of the asset. This is useful for estimation of property value for taxation purposes like property tax etc. For such assets like real estate, market and economic conditions are likely to be crucial such as in cases of economic downturn.

The future value of an annuity due formula shows the value at the end of period n of a series of regular payments. The payments are made at the start of each period for n periods, and a discount rate i is applied.

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