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Finance Formulas / July 17, 2018 / Tatiana Douglas

A depreciation rate is the percentage of a long-term investment that you use as an annual tax deductible expense during the period over which you claim it as a tax deduction. Because you use fixed assets, or major business investments, over time, it doesn't make sense to simply deduct the total amount you pay during the year you pay it.

The annuity payment formula is used to calculate the periodic payment on an annuity. An annuity is a series of periodic payments that are received at a future date. The present value portion of the formula is the initial payout, with an example being the original payout on an amortized loan.

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