Question

If r% is deducted every year, the value of a machine after n years is Rs. n Find out how much the machine cost years ago?​

Answer 1

Answer:

We will discuss here how to apply the principle of compound interest in the problems of uniform rate of depreciation.

If the rate of decrease is uniform, we denote this as uniform decrease or depreciation.

If the present value P of a quantity decreases at the rate of r% per unit of time then the value Q of the quantity after n units of time is given by

Q = P(1 - r100)n and depreciation in value = P - Q = P{1 – (1 - r100)n}

If the present population of a car = P, rate of depreciation = r% per annum then the price of the car after n years is Q, where

Q = P(1 - r100)n and depreciation = P - Q = P{1 – (1 - r100)n}