Question

10 During every financial year, the value of a machine depreciates by 10%. Find the
original value (cost) of a machine which depreciates by * 2.250 during the second year.​

Answer 1

Answer:

Let the original cost of the machine = Rs. 100

∴ Depreciation during 1st year = 10% of Rs. 100 =Rs. 10

value of the machine at the beginning of 2nd year =Rs.100−Rs.10=Rs.90

∴ Depreciation during 2nd year =10%ofRs.90=Rs.9

Now, when depreciation during 2nd year = Rs. 9, original cost =Rs.100

⇒ when depreciation during 2nd year =Rs.2,250,

original cost =Rs.

9

100

×2,250=RS.25,000 and..