Question

The cost of machine is rs 250000 it depreciates of the rate of 4% per annum find the cost of machine after three year

Answer 1

Answer:

Rs. 2,21,184 is the answer.

Explanation:

Original cost of the machine : 2,50,000

Rate of depreciation : 4% per annum (4/100)

1)

Depreciation for first year : 2,50,000 x 4/100 = 10,000

Depreciated value of asset for first year - 2,50,000 : 10,000 = 2,40,000

2)

Depreciation for second year : 2,40,000 x 4/100 = 9,600

Depreciated value of asset for second year : 2,40,000 - 9,600 = 2,30,400

3)

Depreciation for third year : 2,30,400 x 4/100 = 9,216

Depreciated value of asset for third year : 2,30,400 - 9,216 = 2,21,184

Answer 2

$\huge \underline \mathfrak {Solution:-}$

Cost of machine (P) = 250000 rupees

It will be depreciated for two years at 10% per year.

Time = 3 years

Rate of depreciation = 4 %

Amount

$= P {(1 - \frac{Rate}{100}) }^{Time} \\ \\ = 250000 {( 1-\frac{4}{100}) }^{3} \\ \\ = 250000 {( 1- 0.04) }^{3} \\ \\ = 250000 \times {0.96}^{3} \\ \\ =221184$

After 3 years it's cost will be 221184 rupees.

Depreciation = (250000-221184) rupees

Depreciation = 28816 rupees