Question

the cost of a machine is supposed to the depreciate each year by 12% of its value at the beginning of the Year if the machine is valued at 44000 Rupees at the beginning of 2008 find its value:
i. at the end of 2009.
ii. at the beginning of 2007.

Answer 1

i) The cost of machine depreciates at the beginning of next year, or we can say at the end of each year, so
Value at the end 2009 = Value at the beginning of 2010
So, Value @ beginning of 2008 = 44000
Value @ beginning of 2009 = 88% of 44000 = 0.88 (44000)

Value @ beginning of 2010 = 88% of 0.88 (44000) = 0.88² (44000)

= 0.7744 (44000)

= 34073.6

ii) Let Value of machine at the beginning of 2007 be V, so
Value of machine at the beginning of 2008 = 0.88 V

0.88 V = 44000
V = 50000
Therefore, Value of machine at the beginning of 2007 was 50000.

Answer 2

Answer:

Step-by-step explanation: