Question

the cash price of a new machine is 90000 if its price depreciates at the rate of 5% a year during the first two years and at the rate of 10% a year thereafter ,what will be the price of the machine after
1. 2 years
2. 5 years

Answer 1

Answer:

1. After 2 Year = Rs. 81225/-

2. After 3 Year = Rs. 59213.03/-

Step-by-step explanation:

First Year = 90000 - 5% = 85500/-

Second Year. = 85500 - 5% = 81225/-

Third Year. = 81225 - 10%. = 73102.5/-

Fourth Year = 73102.5 - 10%. = 65792.25/-

Fifth Year. = 65792.25 - 10% = 59213.03/-