Depreciation is tangible.

So we have this depreciation value. This is the truck depreciation.

That's what depreciation does.

Well, you know depreciation, man.

You'll often hear the words depreciation and amortization used together.

Instead of retooling I'll call that depreciation.

Interest and Taxes.

And if we did our depreciation schedule right, or if the

And then we have depreciation, and we want to think a little bit in this video, what does the depreciation do to the cash flow statement?

Before Interest and Taxes.

And during harvest, put it back with interest, food interest.

Does depreciation of the yen give rise to inflation?

This is all a review of the depreciation video.

Really, in my mind, it's very similar to depreciation.

And if interest wanes, then

So the depreciation in each of these periods is 20,000.

So anyway, I will talk about interest, and then simple versus compound interest.

So let me now make a distinction between simple interest and compound interest.

So instead of putting 500,000 there, the depreciation is minus 250,000.

And then we have interest expense.

And what's my effective interest rate?

And I didn't show any interest.

First interest

Interest rate

Interest expense.

National interest.

100 interest.

Professional interest?

Interest. Weekly.

And then the other 250,000 essentially went to an expense called depreciation, which is right there.

You get interest on the interest from previous years.

I have lost both principal and interest.

And that 10 is essentially the interest.

And let's say you're paying 6 interest.

You've paid all the principal and interest.

My interest quickened.

Places of Interest

Nominal interest rate

Market interest rate

Effective interest rate

On interest expense.

So what's interest?

Interest expense 500,000.

Person of interest.

Of great interest.