Question

the cost of a machine is ₹ 32,000. Its value depreciates at the rate of 5% every year . Find the total depreciation in its value by the end of 2 years .

Answer 1

Given that cost of a machine = 32000 rupees.

Given that the machine value depreciates at the rate of 5% every year.

At the end of 1st year = 32000 * 5/100

                                     = 320 * 5

                                    = 1600.

Therefore the machine cost at the end of the 1st year = 32000 - 1600

                                                                                          = 30400.


At the end of the 2nd year = 30400 * 5/100

                                              = 304 * 5

                                              = 1520.


Therefore the total depreciation at the end of 2nd year = 1600 + 1520 = 3120.

Hope this helps!