Question

Balbir Singh purchase emotional 2 years ago for rupees 62500 if the value of motion decreases by 8% per year then what will be the value of the machine today ​

Answer 1

Given :

Balbir Singh purchased a machine 2 years ago.

The purchased value of the the machine = 62,500

Value decrease rate = 8% per year

To Find :

The Present value of the machine.

Step-by-step explanation:

Purchased Value (V₁) = 62,500 Rs.

Decrease rate per year (R) = 8%

Time (t) = 2 years

Formula :

$V_2=V_1(1-\frac{R}{100})^t$

$=62,500(1-\frac{8}{100})^2$

= 62,500(1-0.08)²

= 62,500(0.92)²

= 62,500 × 0.8464

= 52,900

The present value of the machine is 52,900 Rs.