A machinery worth Rs.500 depreciated by 5%. It's value after one year will be
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Value of machinery = Rs. 500
After 1 year it's value = 5% reduction
so what is 5% of 500 ?
= 5/100 × 500
= 25
so , reduction = 500-25
= 475
thus price of machinery after one year will be Rs. 475
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