Question

A company purchases an office copier machine for rs 50000 it is estimated that the copier depreciates, in its value at a rate of 15% per year what will be the value of the copier after 15yrs

Answer 1

So, value of the machine after one year will be =50000-(15/100)50000
=50000(85/100)
=0.85x50000

So,this new value will be the base value for next year and the new value after further 15% depreciation will be
= 0.85x0.85x50000
=Rs 4367.71

Similarly after 15 years net value will be
=[(0.85)^(15)] x 50000
=Rs 4367.71