Question

the cost of a production plant is 90,000, If its value defreciates 10%
annually. Find the value of the plant after 4
years​

Answer 1

$The \: value \: of \: the \: plant \: after \: 4 \: years \: will \: be \: Rs \: 59049$

Step-by-step explanation:

GIVEN

Initial Price = 90000

Rate = 10%

Time = 4 years

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TO FIND

The value of the plant after 4 years

___________________________

We know that,

$Final \: price = initial \: price(1 + \frac{rate}{100})^{time}$

$Final \: price = 90000(1 - \frac{10}{100})^{4}$

$Final \: price = 90000 \times \frac{9}{10}\times \frac{9}{10}\times \frac{9}{10}\times \frac{9}{10}$

$Final \: price = 81000 \times \frac{9}{10}\times \frac{9}{10}\times \frac{9}{10}$

$Final \: price = 72900 \times \frac{9}{10}\times \frac{9}{10}$

$Final \: price = 65610 \times \frac{9}{10}$

$Final \: price =59049$

$The \: value \: of \: the \: plant \: after \: 4 \: years \: will \: be \: Rs \: 59049$