Exercise 10.5
1 A motorbike costs 71,000 in July 2002. Its value depreciates by 10% per annum.
Find its value after 6 years.
2 The population of a town is increasing at the rate of 5%. What will be the
population of the town on this basis after 2 years if the present population
is 16,000?
3 A town has a population of 54,678 in January 2017. A decrease in population at
the rate of 8% p.a. is expected after January 2017. What will be the expected
population in January 2019? Also, find the population decrease.
4 The population of a city in July 2008 was 98,979 people. The city experienced an
annual average rate of compound increase of 7% p.a. What was the population in
July 2004?
5 Machinery worth 2,56,300 depreciates at a rate of 12% p.a. How much is it worth
after 6 years if the rate of depreciation is compounded annually?
JMMARY
pound interest is the interest calculated on the previous year's amount (A = P + 1).
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1.28400 rupees.
2.Population = 16000
3.a population of 54,678
4. 80797
5.With the passing of time, the value of a product decreases. This is referred to as depreciation. There are many methods to calculate the value of depreciation. And the two important aspects of it are present value and future value.
But many of these methods do not take into account the time value of money. As time goes by, the value of the product depreciates and along with this the value of money might also increase or decrease. Also, attached to this principle is the time. The duration during which the value of a product depreciates.
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