Question

✴️CONTENT QUALITY ANSWER REQUIRED✴️

➡️STANDARD MARKS 3⬅️

A manufacturer estimates that the value of his machinery depreciates by 15% of its value at the beginning of the year. Find the original value of the machine if it depreciated by Rs. 5355 during the second year.

❌STUPID ANSWERS❌ WILL BE IMMEDIATELY REPORTED ✴️

Answer 1

Let the original value of the machine = 100.

Depreciation during 1st year = 15% of 100

                                              = 15/100 * 100

                                              = 15.


Value of Depreciation at the beginning of 2nd year = 100 - 15

                                                                                      = 85.


Value of Depreciation during the 2nd year =  15% of 85

                                                                       = 15/100 * 85

                                                                       = 12.75.


Given that depreciation during 2nd year = 5355

= 100 * 5355/12.75

= 535500/12.75

= 42000.


Therefore the original value of machine = 42000 rupees.


Hope this helps!

Answer 2

Assume the original cost of machine is M
Depreciation during 1st year is 0.15M
Value at the beginning of 2nd year, after deprecation during the first year = 0.85M
Depreciation during 2nd year is 0,15(0,85M) - 5355 Hence M=5355/(0.15 X 0.85) =Rs. 42000