Question

If a machine is bought for $30,000 and its value got depreciated at a rate of 10% per annum, then after how many
years will the value of the machine be less than half of its original cost?​

Answer 1

Answer:

Present value of the machine P= 30,000, Rate of depreciation r=10%, Number of years n=1

The value of the machine after 'n' years p = $(1-\frac{r}{100} )^{n}$

∴ The value of the machine after one years =30,000 $(1-\frac{10}{100} )^{1}$

                                                 = 30,000 x $(\frac{90}{100} )^{1}$

                                                 = 30,000 x  $\frac{90}{100}$

                                                 = 30,000 x 0.9

                                                 = 27,000

∴ The value of the machine after one years = 27,000

Step-by-step explanation:

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