Question

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A piece of equipment costs Rs. 600000 in a certain factory. If it depreciates in value 1% the first year, 13.5% the next year, 12% the third year and so on. What will be its value at the end of 10 years, all percentages applying to the original costs?
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Answer 1

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Answer 2

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Step-by-step explanation:

I m taking values as 15%, 13.5% and 12%

Let the cost of an equipment be Rs. 100.

Now the percentages of depreciation at the end of 1st,2nd,3rd years are 15, 13.5,12, which are in A.P., with a=15 and d= -1.5.

Hence, percentage of depreciation in the tenth year = a + (10-1) d = 15 + 9 (-1.5) = 1.5

Also total value depreciated in 10 years = 15 + 13.5 + 12 + ... + 1.5 = 82.5 (Sum of 10 terms of the AP)

Hence, the value of equipment at the end of 10 years=100 - 82.5 = 17.5

Thus the required total value =

$\frac{17.5}{100 }$×600000=105000${\large\bold\green{》 ❥︎ \:Hope \: This \: Helps \: You \:♡︎ 《}}$