What is the formula for annual depreciation percentage?

The formula for annual depreciation percentage is determined by taking the total depreciation amount and dividing it by the effective age of the asset. This allows appraisers to understand how much of the asset's value is being depreciated annually. By dividing the depreciation percentage by the effective age, you're ensuring that you're calculating how the value diminishes in relation to how long the asset has been in use and its expected useful life.

This approach relies on understanding that as assets age, their functionalities might decrease, necessitating an annual depreciation to reflect their current market value in a more accurate manner. Given this context, this formula effectively captures that relationship between effective age and the total depreciation, providing a straightforward calculation for determining annual depreciation.

Other options do not convey the correct relationship needed for properly calculating annual depreciation. They either misrepresent the ratio of effective age to depreciation percentage or fail to consider the total lifespan of the asset correctly.