A business bought computers for its company for $350,000 two years ago. What is the value of the company's computers in three years using the depreciation rate 23%?

2 Answers
Aug 25, 2016

Answer:

#=234500$#

Explanation:

#350000times(1-0.23)#

#=350000times0.67#

#=234500$#

Aug 25, 2016

Answer:

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(1-23/100)^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