Answer:
R 85400
Explanation:
The amount of depreciation will be the current amount minus the amount after three years.
amount after threes is calculated as follow
A= P x( 1+ r) ^n
Wheres A: amount after 3 years
P : principal amount =r 175,000; r = -20%, n is number of period
A = 175,000 x ( 1- 0.2)^3
A =175,000 x(0.8)^3
A = 175,000 x 0.512
A=89,600
Depreciation =175,000 - 89,600
=R 85400
