Question

The cost price of a machine is 500000. If the rate of depreciation
is 10% per year, find the depreciation in price of the machine after
two years.​

Answer 1

Answer:

given that :-

Present value = 500000

Reduced value = 364500

Rate of depreciation = 10% p.a.

Consider n years as the period

We know that

A/P = (1−r/100)

n

Substituting the values

364500/500000=(1−10/100)

n

By further calculation

(9/10)

n

=729/1000=(9/10)

3

So we get

n=3

Therefore, the period in which its value be reduced to 364500 is 3 years.