#### Explanation:

$350000 \times \left(1 - 0.23\right)$

$= 350000 \times 0.67$

=234500$ Aug 25, 2016 Assumption: depreciation is compounded ( is in real life) $94737.45 to 2 decimal places

#### Explanation:

This is not only a question checking you know how to compute the depreciation but also to check if you read the question properly. There is a trap!

Depreciation will be $P {\left(1 - \frac{23}{100}\right)}^{n}$

2 years past + 3 years from now = 5 years

Where n is the number of years and P is the initial value.

$350000(77/100)^5 =$94737.445...

=\$94737.45 to 2 decimal places