Question

a machine worth rupees 12000 is depreciated by 10% per year.what will be its value after 2 years​

Answer 1

Answer:

1) 9720 if the method is Reducing Balance Method

2) 9600 if the method is Straight Line .

Answer 2

The value of the machine after 2 years = Rs. 9720

Given :

A machine worth rupees 12000 is depreciated by 10% per year

To find :

The value of the machine after 2 years

Solution :

Step 1 of 2 :

Find initial price and rate of depreciation

A machine worth rupees 12000 is depreciated by 10% per year

Initial price = I = Rs. 12000

Rate of depreciation = R = 10% per year

Step 2 of 2 :

Find value of the machine after 2 years

Here n = 2

Hence value of the machine after 2 years

$\displaystyle \sf{ = P { \bigg( 1 - \frac{R}{100} \bigg)}^{n} }$

$\displaystyle \sf{ = 12000 \times { \bigg( 1 - \frac{10}{100} \bigg)}^{2} }$

$\displaystyle \sf{ = 12000 \times { \bigg( \frac{100 - 10}{100} \bigg)}^{2} }$

$\displaystyle \sf{ = 12000 \times { \bigg( \frac{90}{100} \bigg)}^{2} }$

$\displaystyle \sf{ = 12000 \times { \bigg( \frac{9}{10} \bigg)}^{2} }$

$\displaystyle \sf{ = 12000 \times \frac{9}{10} \times \frac{9}{10} }$

$\displaystyle \sf{ = 9720 }$

The value of the machine after 2 years = Rs. 9720