# 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

#### Explanation:

Aug 25, 2016

Assumption: depreciation is compounded ( is in real life)

#### 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

2 years past + 3 years from now = 5 years

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