The cost price of a machine is 2,50,000. If the rate of depreciation is 10% per year find the depreciation in price of the machine after two years.
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Here, P = Cost price of machine
= Rs 2,50,000 R = Rate of depreciation per year = 10% N = 2 years A
= Depreciated price of the machine after 2 years
= 2,500 × 81
= Rs 2,02,500 Depreciation in price
= Cost price (P) – Depreciated price (A)
= 2,50,000 – 2,02,500
= Rs 47,500
∴ The depreciation in price of the machine after 2 years would be Rs 47,500.
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