Question

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.

Answer 1

Hi ,

Cost price of the machine( C.P ) = Rs250000

Rate of depreciation ( d ) = 10% per year

Time ( T ) = 2 years

Cost of machine after 2 years

=C.P[(100 - d)/100]^T

= 250000[ ( 100 - 10 )/100 ]²

= 250000 × 90/100 × 90/100

= Rs 202500


Depreciation = Rs 250000 - 202500

= Rs 47500

I hope this helps you.

: )

Answer 2

$\underline \bold{Solution:-}$

Cost of computer (P) = 250000 rupees

Time = 2 years

Rate of depreciation = 10 %

Amount

$= p {(1 - \frac{rate}{100}) }^{time} \\ \\ = 250000 {( 1-\frac{10}{100}) }^{2} \\ \\ = 250000 {( 1- 0.1) }^{2} \\ \\ = 250000 \times {0.9}^{2} \\ \\ =202500$

After 2 years it's cost will be 202500 rupees.

Depreciation = 250000-202500

= 47500