The value of a machine depreciates 10% annually What will be its value after 2 years if its - Maths - Comparing Quantities

Question

The value of a machine depreciates 10% annually What will be its
value after 2 years if its present value is Rs 200000

Vimala · Accepted Answer

The present value of a machine is P = Rs 2,00,000 The rate of depreciation is R = 10% Time period N = 2 years We need to find the depreciated value of the machine after 2 years Use the formula $A = P {(1 - \frac{R}{100})}^{N}$ Substitute the values P = Rs 2,00,000, R = 10, N = 2 in the above formula, we have $A = 200000 {(1 - \frac{10}{100})}^{2} = 200000 (\frac{9}{10})^{2} = 200000 \times \frac{81}{100} = 2000 \times 81 = R s 1, 62, 000$ Thus, the depreciated value of the machine is Rs 1,62,000

The value of a machine depreciates 10% annually . What will be its value after 2 years if its present value is Rs 200000