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depreciation

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Depreciation is defined as a reduction in the value of an asset that occurs over time as the asset gets older or as wear and tear occurs, or the decline of one currency in relation to others.

(noun)

When your computer gets older and less valuable and useful because of its age and wear and tear, this is an example of depreciation.
When the dollar declines in value in relation to the Euro, this is an example of depreciation.

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See depreciation in Webster's New World College Dictionary

noun

☆
1. a decrease in value of property through wear, deterioration, or obsolescence
2. the allowance made for this in bookkeeping, accounting, etc.
☆ a decrease in the purchasing power of money
a making seem less important; disparagement

Origin: see depreciate

See depreciation in American Heritage Dictionary 4

noun

A decrease or loss in value, as because of age, wear, or market conditions.
Accounting An allowance made for a loss in value of property.
Reduction in the purchasing value of money.
An instance of disparaging or belittlement.

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