# AMORDEGRC function

FUNCTIONS
Depreciation
• AMORDEGRC
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## AMORDEGRC

Returns depreciation for a period using degressive depreciation (French system).

This function is only available if the Analysis AddIn is installed.

### Syntax:

AMORDEGRC(cost; purchase_date; first_period_end; salvage; period; rate; basis)

cost: the acquisition cost.
purchase_date: the date of acquisition.
first_period_end: the end date of the first depreciation period.
salvage: the salvage value at the end of life.
period: the period for which to calculate depreciation. 0 is the initial period (from purchase_date to first_period_end.
rate: the rate of depreciation.
basis: is chosen from a list of options and indicates how the year is to be calculated. Defaults to 0 if omitted.
0 - US method (NASD), 12 months of 30 days each
1 - Exact number of days in months, exact number of days in year
2 - Exact number of days in month, year has 360 days
3 - Exact number of days in month, year has 365 days
4 - European method, 12 months of 30 days each

Calculates the amount of depreciation for a period as degressive amortization, as used in French accounting systems.
The life time t of the asset is 1/rate. A depreciation factor f is given by:
0 < = t < 3  : f=1.0
3 <= t < 5  : f=1.5
5 <= t < 6  : f=2.0
t >= 6     : f=2.5
Depreciation for a period is calculated as:
period 0: cost*rate*YEARFRAC(purchase_date;first_period_end;basis)
period 1 to t-3 : rate * f * previous_period_depreciation
period t-2 : 0.5 * previous_period_depreciation
period t-1 : depreciation_in_period_t-2
period >= t : 0

### Example:

AMORDEGRC(1000; ”2006-02-01”; ”2006-12-31”; 10; 0; 0.1; 1)

returns 228.