The cost of a refrigerator is Rs 9000. Its value depreciates at the rate of 5% per year. Find the total depreciation in its value at the end of 2 years.
BTW (I WANT TO SEE THE METHOD) THE ANSWER IS Rs 877.50
Answers
The total depreciation in the value of the refrigerator after 2 years is Rs 877.5
Step-by-step explanation:
The initial cost of the refrigerator is Rs 9000
It depreciates at a 5% rate, i.e., 5/100 of the principal
Thus, after 1 years, the cost of the refrigerator is = Principal – (5/100*Principal)
= 9000 – (0.05 * 9000)
= 9000-450
=8550
After 2nd year, the cost of refrigerator is = 8550 – (5/100 * 8550)
= 8122.5
Thus, the total depreciation in the value of
the refrigerator = 9000 – 8122.5
= 877.5
Thus, the total depreciation in the value of the refrigerator after 2 years is Rs 877.5