The cost of a washing machine depreciated by rs.720 during second year and by rs.648 during the third year.Calculate:i)the rate of depreciation per annum.ii)the original cost of the machine.iii)the value of the machine at the end of the third year.
Answers
Answer:
i) 10 %
ii)Rs 7200
iii) Rs 5248.8
Step-by-step explanation:
Hi,
Let 'x' be the cost price of washing machine.
Let the annual rate of depreciation be r%
Depreciation during second year = r% of x = rx/100 = 720-----(1)
Value of washing machine after first year = Cost Price - Depreciation
Depreciation during third year = r% of (1 - r%) x = rx(1 - r/100)/100 = 648-----(2)
Dividing (2)/(1), we get 1 - r/100 = 648/720 = 9/10
r/100 = 1/10
r = 10.
Hence the rate of depreciation per annum is 10 %
From (1), we have rx/100 = 720
10x/100 = 720
x/10 = 720
x = 7200 Rs.
Original Cost of the machine = Rs 7200
Value of the machine at the end of 1st year = x - 720
= 6480 Rs
Value of the machine at the end of 2nd year = 6480 - 648
= 5832 Rs
Value of the machine at the end of 3rd year = 5832 - 10%*5832
= 5832 * 9/10
= Rs 5248.8
Thus, value of machine at the end of 3 rd year = Rs 5248.8 .
Hope, it helps !
Answer:
(i) 10%
(ii) Rs 7200
(iii) Rs 5248.80
Step-by-step explanation:
Find the rate:
Deprecation in the first year = Rs 720
Deprecation in the Second year = Rs 648
Rate of depreciation = (720 - 648)/720 x 100
Rate of depreciation = 10%
Find the original value of the washing machine:
Deprecation = 10%
Depreciation = Rs 720
10% = Rs720
1% = 720 ÷ 10 = Rs 72
100% = 72 x 100 = Rs 7200
Find the value at the end of third year:
Value = 7200(1 - 10/100)³
Value = Rs 5248.80
Answer (i) 10% (ii) Rs 7200 (iii) Rs 5248.80