Question

a new machine depreciates by Rs.5400 in its 2nd year and Rs.4860 in its 3rd year. find its rate of depreciation and original value

Answer 1

Dear Student,

◆ Answer -

Rate of depreciation = 10 %

Original price of machine = Rs 60000

● Explanation -

Suppose x be original price of the machine and r be rate depreciation.

Rate of depreciation is calculated by -

r = (5400-4860)/5400 × 100

r = 10 %

In first year, machine depreciates by x × r = xr.

In second year machine depreciates by (x - xr) × r = xr - xr^2 = 5400

5400 = (x - x×10/100) × 10/100

5400 = (x - 0.1x) 0.1

5400 = 0.9x × 0.1

5400 = 0.09x

x = 5400 / 0.09

x = Rs 60000

Thanks dear. Hope this helps you...