Question

Zeus Industries bought a computer for $2207. It is expected to depreciate at a rate of 27% per year. What will the value of the computer be in 4 years?

Answer 1

Multiply 2207 by .27 and get $595.89.  This is the first year depreciation.
After 1 year the computer has a value of $1611.11.
Year 2 depreciation would be 1611.11 X .27= $434
1611.11-434= $1,177.11
Year 3  1177.11 X .27= $317.82
1177.11- 317.82= $859.29
Final year 859.29 X .27= 232
$859.29- 232= $627.29