Question

The cost of a machine is ₹ 2,50,000 . It depreciates at the rate of 4% per annum. Find the cost of the machine after three years.

Answer 1

$\huge \underline \mathfrak {Solution:-}$

Cost of machine (P) = 250000 rupees

It will be depreciated for two years at 10% per year.

Time = 3 years

Rate of depreciation = 4 %

Amount

$= P {(1 - \frac{Rate}{100}) }^{Time} \\ \\ = 250000 {( 1-\frac{4}{100}) }^{3} \\ \\ = 250000 {( 1- 0.04) }^{3} \\ \\ = 250000 \times {0.96}^{3} \\ \\ =221184$

After 3 years it's cost will be 221184 rupees.

Depreciation = (250000-221184) rupees

Depreciation = 28816 rupees