Question

the cost of a fridge is ₹9000. its value depreciates at the rate of 5% every year. find the total depreciation in its value at the end of 2 years.

Answer 1

Cost of fridge = Rs.9000

depreciation rate = 5% p.a.

Cost of fridge after 1 year = 9000 - 5/100*9000 = Rs. 9000 - Rs. 450

= Rs. 8550

Cost of fridge after 2 years = 8550- 5/100 * 8550 = Rs. 8550- Rs.427.5

= Rs. 8122.5

So after 2 years , cost of fridge = Rs.8122.50

Answer 2

Depreciation is by 5%.

So after one year, value = 95%
So after two years, value = 90.25% = 8122.50 Rs//