Economics

Q&A: What are appreciation and depreciation?

Appreciation is the increase in value of something over a period of time.
Depreciation is the decrease in value of something over a period of time.

Real-life Application:
Some examples of appreciating assets are houses (usually), the broad stock market (usually), and interest-bearing bank accounts.
Some examples of depreciating assets are cars and electronics (phones, computers, TVs, etc.).

Sports Analogy:
Players who are young, working hard, and gaining more experience are appreciating, while players near the end of their career and are on the decline are depreciating.


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