Question

In a factory, a machine was bought for 1,75,000. It depreciates at the rate of 10% in the first year, 8% in the second year and 6% in the third year. What will be the value of the machine at the end of 3 years?​

Answer 1

Answer:

Value of the vehicle after 3 years

=1,75,000×(1−

100

20

)

3

=1,75,000×

5

4

×

5

4

×

5

4

= Rs. 89, 600

∴ Total depreciation = 1, 75, 000 - 89, 600

=Rs.85,400