Question

a machine purchased for $8,65,000.its value drpreciates at the rate 12% per annum. what will be its value after 2

Answer 1

If Vo is the value of an article at a certain time and R% per annum is the rate of depreciation, then the value Vn at the end of n years is given by

Vn = Vo (1-R/100)^n


Given :

R= 12%, n= 2years, Vo= $ 865000

Vn = Vo (1-R/100)^n

Vn = 865000 (1-12/100)²

Vn= 865000(1-3/25)²

Vn= 865000 (22/25)²

Vn = (865000 ×22× 22)/25× 25

Vn= 1384 × 22× 22

Vn= $ 669856



Hence,the price after 2 years is $ 669856

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