depreciation

Everyday

1. (money) The loss of value of something as it gets older or is used, like a car being worth less each year. tree →
2. (money) A fall in the value of a country's money compared with other currencies. tree →
3. (formal) Saying that something is of little worth. tree →
4. Self-depreciation means running yourself down, saying that you are not very good or clever. tree →

In the lessons

In money maths, depreciation is often a percentage taken off each year: a bike worth 200 that loses 10% a year is worth 180 after one year. In business and news it explains why second-hand things cost less and why a currency buys less abroad. Phrases: «depreciation of the pound», «the car's depreciation».

Examples

• New cars suffer fast depreciation in the first year. tree →
• Because of depreciation, Dad's old phone is worth very little. tree →
• The depreciation of the dollar made holidays abroad dearer. tree →
• We worked out the depreciation of the laptop in maths. tree →
• Toys usually lose value, but some rare ones avoid depreciation. tree →
• The company counts depreciation on its machines every year. tree →

Note

Opposite: appreciation (going up in value). Verb: depreciate. In maths problems: depreciation means the value goes down; with a percentage each year, work it out on the new value each time (like compound interest in reverse).