a machinery worth rs 10500 depreciated by 5%per year.find its value after 2 per annum
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Hey Mate,
Here's your answer,
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=> Principal = 10500 Rs
=> Rate = 5%
=> Time = 2 years
=> Depreciated 5% per year
=> For 1st year,
=> S.I = PRT / 100
=> S.I = 10500 × 5 × 1 / 100
=> S.I = 105 × 5 × 1
=> S.I = 525 Rs
=> Amount = Principal - Interest
( Only for depreciated, the actual formula is Amount = Principal + Interest)
=> Amount = 10500 - 525
=> Amount = 9975 Rs.
=> For 2nd year,
=> S.I = PRT / 100
=> S.I = 9975 × 5 × 1 / 100
=> S.I = 498.75 Rs
=> Amount = P - S.I
=> Amount = 9975 - 498.75
=> Amount = 9,476.25
__________________
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