Financial Calculation - Declining Balance of Depreciation.?

Question

I buy a car at $28,000. Declining balance depreciation is allowed at 22.5%. After how many years will it be "worth" just 50% of what I paid for it ? To 1 decimal place. 

I can work it this out easy enough with a goal seeking spreadsheet, using financial formulae, but what is the method with just a scientific calculator ? Please show the workings, with explanation.

john · Accepted Answer

0.5= (1 - 0.225)^t
t ln(0.775) = ln(0.5)
t = ln(0.5)/ln(0.775) 
t =  2.7194 years

any value will be half its initial at 22.5% annual depreciation
compounded annually

xpatinasia · Answer

There are several methods of calculating depreciation, including: straight line, and sum of years.
You need to specify the type of depreciation.

Financial Calculation - Declining Balance of Depreciation.?

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