A piece of equipment cost a certain factory rupees 600000 rupee depreciation value 15% the first 13% the second year 12% the third year and so on what will be its value at the end of 10 years all percentage is applied to the original cost
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Step-by-step explanation:
Let the cost of an equipment be Rs. 100.
Now the percentages of depreciation at the end of 1st,2nd,3rd years are 15, 13.5,12, which are in A.P., with a=15 and d= -1.5.
Hence, percentage of depreciation in the tenth year = a + (10-1) d = 15 + 9 (-1.5) = 1.5
Also total value depreciated in 10 years = 15 + 13.5 + 12 + ... + 1.5 = 82.5 (Sum of 10 terms of the AP)
Hence, the value of equipment at the end of 10 years=100 - 82.5 = 17.5.
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