A new computer costs Rs100000.The depreciation of computers is very high as new models with better technological advantages are coming into the market. The depreciation is as high 50% every year. How much will the cost of computer be after 2years?
Answers
The cost of the computer will be Rs. 25000 after 2 years.
Step-by-step explanation:
Method 1.
The cost of the computer is Rs. 100000 and this depreciates at a rate of 50% every year.
After 1 year, the cost of the computer will be
= Rs. 100000 (1 - 50/100)
= Rs. 100000 * 50/100
= Rs. 50000
After another year, the cost of the computer will be
= Rs. 50000 (1 - 50/100)
= Rs. 50000 * 50/100
= Rs. 25000
Therefore the cost of the computer will be Rs. 25000 after 2 years.
Method 2.
The cost of the computer is Rs. 100000 and this depreciates at a rate of 50% every year.
After 2 years, the cost of the computer will be
= Rs. 100000 (1 - 50/100)²
= Rs. 100000 (50/100)²
= Rs. 100000 * (1/2)²
= Rs. 100000 * 1/4
= Rs. 25000
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Step-by-step explanation:
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