Question

The cost of a washing machine depreciates by ₹720 during the second year and by ₹648 during the third year, calculate:
1) the rate of depreciation per annum
2) the original cost of the machine
3) the value of the machine at the end of third year​

Answer 1

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 2

Step-by-step explanation:

i - Rate of depreciation = ( 720-648/720) × (100) =(72/720) × 100 =10 %

2- let the original cost be x

rate of depreciation 10%

then , x -( 10 x / 100 ) =720

= ( 100 x - 10 x / 100) = 720

= 90 x / 100 =720

= x = 720 × 10/9 = Rs 800

3- = 648 - ( 10 × 648/100) = 648 - 64 . 8 =Rs 583 .2