Question

A machine is purchased for rupees 625000. It's value depreciates at the rate of 10% per annum. What will be it's value after 3 years?

Answer 1

Heya ☺

Given that

P = ₹6,25,000

R = 10 % p.a.

T = 3 years

Solution

Value of a machine after 3 years = P(1-R/100)^n

= 6,25,000(1-10/100)^3

= 6,25,000(100-10/100)^3

= 6,25,000(90/100)^3

= 6,25,000(9/10)^3

= 6,25,000 × 729/1,000

= ₹4,55,625






Thanks