Question

during every financial year , the value of a machine depreciates by 10%p.a. Find the original value (cost) of the machine which depreciates by Rs2250 during the second year

Answer 1

Answer:

The original cost of a machine is Rs. 25,000.

Step-by-step explanation:

It is given that during every financial year,the value of a machine depreciate by 12%.

Let the original cost of a machine be x.

In first year the machine depreciate by 12%. So, the value of machine after 1 year is

x(1-12/100) = x(1-0.12) = 0.88x

The value of machine after 1 year is 0.88x.

In second year the machine depreciate by 12%.

D = 0.88x( 12/100 )

D = 0.1056x

The machine depreciate by rupees 2640 during the second financial year of it's purchase.

2640 = 0.1056x

(2640/0.1056) = x

25000 = x

Therefore the original cost of a machine is Rs. 25,000.