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%?
Assumption: depreciation is compounded ( is in real life)
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
2 years past + 3 years from now = 5 years
Where n is the number of years and P is the initial value.